If the borrower does not satisfy their monthly payment within 15 days of the due date, the borrower will be charged a late fee. Late fees are 5% of the payment amount or $15, whichever is greater (unless state restrictions apply). We divide and distribute the late fees proportionately among the investors in the corresponding Notes, subject to deductions for collection fees and servicing fees. Collections If a loan is more than one day past due, we may collect on it directly or we may refer it to a third-party servicer or collection agency. Once a loan reaches 121 days past due, it is charged off. Historically, recovery rates on loans once they have entered into collections range from 7-12%. Investors cannot attempt their own collections efforts or attempt to contact borrowers directly.