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Michael Freno 53082e4afd Draft Terms of Service document for Lendair platform FRE-483

- 22 sections: user accounts, loans, fees, collections, arbitration
- Platform fee: 1% lender origination, 2% borrower transaction
- Late fee:  or 5% after 5-day grace; default at 90 days
- Delaware law, binding arbitration, class action waiver
- Full risk disclosures for peer-to-peer lending

2026-03-22 18:16:59 -04:00

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Terms of Service

Last Updated: March 22, 2026

1. Acceptance of Terms

By accessing or using the Lendair platform (the "Service"), you agree to be bound by these Terms of Service ("Terms") and our Privacy Policy. If you do not agree to these Terms, you may not access or use the Service.

We reserve the right to modify these Terms at any time. Material changes will be communicated via email or in-app notification. Your continued use of the Service after such changes constitutes acceptance of the new Terms.

2. User Accounts and Registration

2.1 Account Creation

To access certain features of the Service, you must create an account by providing accurate, current, and complete information, including:

Full legal name
Valid email address
Phone number
Government-issued identification
Credit history authorization
Bank account information

2.2 Account Security

You are responsible for maintaining the confidentiality of your login credentials and for all activities that occur under your account. You must immediately notify us of any unauthorized use of your account.

2.3 Age Requirement

You must be at least 18 years old (or the age of majority in your jurisdiction) to use this Service.

2.4 One Account Per User

You may maintain only one account. We reserve the right to suspend or terminate accounts we believe violate this provision.

3. Services Provided

Lendair operates a peer-to-peer micro-lending platform that connects lenders and borrowers. The Service includes:

3.1 For Borrowers

Requesting micro-loans from individual lenders
Browsing available loan offers
Accepting loan terms
Repaying loans through the platform
Building credit history

3.2 For Lenders

Listing funds available for lending
Setting interest rates and terms
Browsing loan requests
Funding borrower loans
Receiving repayments

3.3 Platform Role

Lendair is a technology platform only. We do not:

Lend our own money
Guarantee loan repayment
Insure lender investments
Act as a bank or financial institution

4. Loan Agreements and Terms

4.1 Loan Agreement Formation

A legally binding loan agreement is formed when:

A borrower accepts a loan offer, OR
A lender funds a loan request

The loan agreement is between the lender and borrower directly, not with Lendair.

4.2 Loan Terms Disclosure

Each loan agreement will clearly display:

Principal amount
Annual Percentage Rate (APR)
Loan term (duration)
Repayment schedule
Total repayment amount
Any applicable fees

4.3 Interest Rate Limits

We comply with all applicable usury laws. Maximum interest rates vary by jurisdiction and borrower type.

4.4 Loan Limits

Minimum loan amount: $10
Maximum loan amount: Varies by borrower credit profile and lender limits
Borrowers may have multiple active loans subject to credit limits

5. Fees and Charges

5.1 Platform Fee (Lenders)

Lendair charges a 1% platform fee on all successful loan originations, deducted from the principal before disbursement to borrowers.

Example: A $100 loan at 10% interest:

Lender provides: $100
Platform fee: $1.00
Borrower receives: $99.00
Borrower repays: $110.00 (if 10% interest)
Lender net return: $110.00 - $1.00 = $109.00

5.2 Transaction Fee (Borrowers)

A 2% transaction fee is charged on loan disbursements, deducted from the principal.

Example: A $100 loan:

Transaction fee: $2.00
Borrower receives: $98.00

5.3 Late Payment Fee

Late payments incur a fee of $5 or 5% of the overdue amount, whichever is greater, after a 5-day grace period.

5.4 Returned Payment Fee

A $15 fee applies to returned/bounced payments.

5.5 Currency

All amounts are denominated in US Dollars (USD) unless otherwise specified.

6. Funds Handling

6.1 Bank Partner

Funds are held, processed, and disbursed through our licensed bank partner(s). Lendair does not hold customer funds directly.

6.2 FDIC Insurance

Funds in transit may be eligible for pass-through FDIC insurance up to $250,000 per account through our banking partner, subject to their terms.

6.3 Withdrawal Timing

Standard ACH: 1-3 business days
Instant transfer: Available for additional fee (varies by funding method)

7. Late Payment Policies

7.1 Grace Period

A 5-day grace period applies to all scheduled payments.

7.2 Late Fee Assessment

Late fees are automatically assessed on the 6th day after the due date.

7.3 Credit Reporting

Payments made more than 30 days late may be reported to credit bureaus
Positive payment history is reported when you opt-in

7.4 Communication

We will attempt to contact borrowers before and after missed payments via:

Email
SMS/text message
Phone call

By using the Service, you authorize us to contact you at the phone number and email provided.

8. Default and Collections

8.1 Definition of Default

A loan is considered in default when:

A payment is more than 90 days late, OR
The borrower files for bankruptcy, OR
The borrower dies or becomes incapacitated, OR
The borrower violates material terms of the loan agreement

8.2 Collections Process

Upon default, we may:

Assign the debt to a third-party collections agency
Report the default to credit bureaus
Pursue legal action to recover the owed amount
Charge the borrower's linked bank account (with proper authorization)
Take other remedies available under applicable law

8.3 Borrower Responsibilities in Default

Borrowers who default agree to:

Pay all amounts due, including principal, interest, and fees
Pay reasonable collections costs and attorney fees
Comply with any repayment arrangement agreed upon

8.4 Lender Remedies

Lenders whose loans go into default may:

Receive partial recovery through our collections process
Write off the loan as a loss
Have the default noted on their platform profile

No lender is guaranteed full or partial recovery of defaulted loans.

9. Dispute Resolution

9.1 Informal Resolution

We encourage informal resolution of disputes:

Contact our support team at support@lendair.com
Provide detailed information about the dispute
Allow 30 days for us to attempt resolution

9.2 Binding Arbitration

Mandatory Arbitration: Except for small claims court or injunctive relief, any dispute, claim, or controversy arising from these Terms or your use of the Service shall be resolved through binding arbitration administered by the American Arbitration Association (AAA).

Location: Arbitration will occur in your local county or a mutually agreeable location
Costs: Each party bears their own costs unless the arbitrator determines otherwise
Limitation on Remedies: In any arbitration, the arbitrator may not award damages beyond what is directly attributable to the dispute

9.3 Class Action Waiver

You agree to resolve disputes on an individual basis only. No class actions or consolidated arbitrations are permitted.

9.4 Small Claims Court

Either party may bring claims in small claims court if the amount falls within jurisdictional limits.

10. Privacy and Data Handling

10.1 Privacy Policy

Your use of the Service is also governed by our Privacy Policy, which explains how we collect, use, and share your information.

We may share your information with:

Lenders/borrowers as necessary to facilitate loans
Credit bureaus for reporting purposes
Banking partners for payment processing
Service providers who assist in operating the Service
Law enforcement or government authorities when required by law

10.3 Data Retention

We retain account information and transaction records for a minimum of 7 years after account closure, as required by applicable law.

11. Representations and Warranties

11.1 Borrower Representations

By requesting loans, you represent that:

All information provided is true, accurate, and complete
You have the legal capacity to enter into loan agreements
The loan will not be used for illegal purposes
You have the ability to repay the loan according to its terms

11.2 Lender Representations

By making loans, you represent that:

You have the legal right and authority to lend the funds
The funds are from a lawful source
You understand the risks of peer-to-peer lending
You can afford to lose the entire amount lent

12. Risk Disclosures (Lenders)

Peer-to-peer lending involves significant risk, including:

12.1 Credit Risk

Borrowers may default on their loans. You may lose some or all of your investment.

12.2 No FDIC Insurance

Loans are not bank deposits and are not insured by the FDIC or any government agency.

12.3 No Lendair Guarantee

Lendair does not guarantee repayment of loans or any specific return on your investment.

12.4 Market Risk

Economic conditions may affect borrower repayment ability and platform performance.

12.5 Liquidity Risk

Loans are illiquid investments. There is no secondary market to sell loans before maturity.

13. Limitation of Liability

13.1 No Consequential Damages

TO THE MAXIMUM EXTENT PERMITTED BY LAW, LENDAIR SHALL NOT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION LOSS OF PROFITS, DATA, USE, GOODWILL, OR OTHER INTANGIBLE LOSSES.

13.2 Limited Liability

Lendair's total liability for any claim arising from these Terms shall not exceed the greater of:

$100, or
The fees you paid to Lendair in the 12 months preceding the claim

13.3 Service Provided "As Is"

The Service is provided on an "AS IS" and "AS AVAILABLE" basis without warranties of any kind, either express or implied.

14. Account Suspension and Termination

14.1 Our Right to Suspend or Terminate

We may suspend or terminate your access to the Service at our sole discretion, without notice, for:

Violation of these Terms
Suspicious or fraudulent activity
Failure to provide requested documentation
Inactivity (accounts inactive for more than 2 years)
Any other reason we deem appropriate

14.2 Effect of Termination

Upon termination:

You lose access to the platform immediately
Outstanding loans remain enforceable according to their terms
Lenders retain rights to collect on funded loans
Borrowers remain obligated to repay outstanding balances

14.3 Your Right to Close Account

You may close your account at any time by contacting support. You must:

Repay all outstanding loans (if borrower)
Wait for existing loans to mature or be repaid (if lender)

15. Prohibited Uses

You may not use the Service to:

Engage in money laundering or other financial crimes
Fund illegal activities or terrorist organizations
Circumvent sanctions or export controls
Commit fraud or deceive other users
Interfere with platform security or operations
Automate interactions without authorization (bots, scrapers)
Harass, abuse, or harm others
Violate any applicable law or regulation

16. Intellectual Property

16.1 Our Intellectual Property

The Service and its content, features, and functionality are owned by Lendair and protected by copyright, trademark, and other intellectual property laws.

16.2 Your Content

You retain ownership of content you submit. By submitting content, you grant Lendair a non-exclusive, worldwide, royalty-free license to use, display, and distribute such content on the Service.

17. Governing Law

These Terms are governed by the laws of the State of Delaware, without regard to conflict of law principles. However, consumer protection laws and usury laws of your jurisdiction may still apply to loan agreements.

18. Compliance and Regulatory Matters

18.1 Know Your Customer (KYC)

We are required to verify your identity in accordance with applicable anti-money laundering laws. You must provide valid government-issued identification.

18.2 Credit Checks

We perform credit checks as part of our risk assessment process. By using the Service, you authorize us to obtain credit reports from one or more consumer reporting agencies.

18.3 Regulatory Changes

We reserve the right to modify or discontinue any feature of the Service to comply with applicable laws and regulations.

19. Amendments to These Terms

19.1 Our Right to Modify

We may update these Terms at any time. The "Last Updated" date at the top of these Terms will reflect the most recent changes.

19.2 Notice of Changes

Material changes: We will provide at least 30 days' notice via email or prominent in-app notification
Non-material changes: Will be effective immediately upon posting

19.3 Continued Use Constitutes Acceptance

Your continued use of the Service after changes becomes effective constitutes acceptance of the new Terms.

20. Miscellaneous

20.1 Severability

If any provision of these Terms is held to be invalid or unenforceable, the remaining provisions will remain in full force and effect.

20.2 Waiver

Our failure to enforce any right or provision of these Terms does not constitute a waiver of that right or provision.

20.3 Entire Agreement

These Terms, together with our Privacy Policy and any additional terms posted on the Service, constitute the entire agreement between you and Lendair regarding your use of the Service.

20.4 Assignment

You may not assign these Terms without our prior written consent. We may assign these Terms without restriction.

20.5 Survival

Certain provisions will survive termination of these Terms, including but not limited to: loan agreements, dispute resolution, limitation of liability, and indemnification.

21. Contact Information

Lendair Inc.

Email: support@lendair.com
Address: [To be determined upon incorporation]

For legal inquiries: legal@lendair.com

22. Acknowledgment

BY USING THE SERVICE, YOU ACKNOWLEDGE THAT YOU HAVE READ, UNDERSTOOD, AND AGREED TO BE BOUND BY THESE TERMS OF SERVICE.

For Lenders:

I understand that loans made through this platform are not insured, not guaranteed by Lendair, and carry the risk of total loss. I have the financial capacity to absorb such losses.

For Borrowers:

I understand that failing to repay loans may result in collections activity, credit reporting, legal action, and additional costs. I have the ability and intention to repay according to the agreed terms.

14 KiB Raw Blame History