[ADiamond]

If people sign a guaranty or a COJ then why do lenders still want 1.5? I understand it is due to risk, but is there that much risk of not getting the money back? If someone defaults is it that difficult to collect? I had someone default recently and I'm wondering if it is really that hard to collect? Do most lenders get their money back? Or just give up and never try to get a judgement?

A COJ offers an automatic judgment without any court proceedings. How it's used to collect is up to the lender's methods for collections. Some know how to use it, some don't. Some lenders get paid, some don't. To answer your question simply: at the end of the day, this is unsecured lending.