Settling directly with a lender
It’s always best to first try to resolve the problem with the lender directly to see if you can both settle on an amount of compensation you’d both be happy with. This is often the cheapest option for you and quickest for the lender. If that’s not possible or if you reject their claim, the lender will likely then notify Fat Llama (if they haven’t already). At this point, a dedicated member of the Resolutions Team who will reach out to you within 24 hours to understand your side of the story.
Please note, you must settle direct payments between yourself and a lender within 24 hours of the end of a rental period. If you don't settle directly within 24 hours, you may be liable to pay penalty fees in the event that the Resolutions Team deems you liable for replacement, repair or late return.
The Resolutions process
Our Resolutions Team is here to mediate any issues you might have with a rental. We will always aim to be as fair as possible, to compensate our lenders for any damages to their items and to protect borrowers from potential false claims.
In the event of a non-return or late return, you may be asked to provide a short written account of events, description of the damage and provide supporting evidence including photos/videos. The Resolutions Team will use accounts and evidence provided by both parties to determine who is liable and for how much. The conclusion they make is final.
In the event of a damage claim, the lender may also be asked to arrange for a third-party repair company to provide a formal repair quote, including an itemised breakdown of the repair costs needed and the repair company's opinion of the likely cause of the damage; ie. user error (in which case you would be liable) or a manufacturing fault (in which case you would not be liable).
If you don't initially settle directly with a lender and the Resolutions Team later deems that you're liable, you may need to pay penalty fees. These will depend on the nature of a claim (ie. non-return, late return, or repair fees).
You must ensure you settle the payment by the deadline as stated by the Resolutions Team to avoid any unnecessary further escalation and suspension from the platform.
For large sums, we may be able to set up a repayment plan to help you payoff the debt in monthly instalments. This would need to be discussed and agreed upon with your Resolutions Case Manager before the deadline.