Lien is a hold placed on an asset as collateral for satisfying a debt. There is no direct visibility of the lien on end user channels, however users who are affected cannot withdraw the funds “held” in their account until the lien is removed..

In Lendsqr, there are two conditions for a lien to be placed on an account.

• When a customer has an outstanding loan payment
• When the customer has a pending transaction.

For context, users who have liens on their accounts have either defaulted on their loan payments or attempted a subsequent transaction when they have a pending one and they will not be able to perform transactions using that account. For example, if a customer has an outstanding loan payment and money is sent to that account, the user will be unable to move the money out, or perform transactions on the account regardless of the amount in the account.  The user then now has to reach out to the Lender for assistance. 

In the event that a user reports an unsuccessful transaction, the lender can confirm if it is a lien related issue by checking for a past due payment or a pending transfer/withdrawal in the user’s transaction history on the Lendsqr admin console.

Once the issue has been sorted out with the user i.e once a lender is certain that all transactions have been settled, or loan payments settled, the lender is expected to reach out to the Lendsqr support team for the removal of this lien.