For Lending Club Borrowers, Interest Now Accrues During Grace Periods
On February 24th, Lending Club eliminated a courtesy that had long been afforded to borrowers, interest waivers during grace periods. Specifically, borrowers who missed a monthly payment were given 15 extra days to make the payment with no extra interest assessed or late fees. Going forward, interest will indeed accrue during grace periods.
“we are eliminating the grace period interest waiver in order to better align borrower payment incentives as we seek to deliver solid returns to our investors,” Lending Club said in an email.
Since this will not affect a borrower’s monthly payment, all additional accrued interest will be extended to another month beyond the maturity date.Last modified: February 26, 2017