P2P Lending / NFT Lending Forum

Lending Club Discussion => Investors - LC => Topic started by: TonySaunders on November 06, 2013, 11:00:00 PM

Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TonySaunders on November 06, 2013, 11:00:00 PM


I speculate that this was to prevent certain abuses. At least one of which I had become accustomed to looking out for and/or taking advantage of.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: brycemason on November 06, 2013, 11:00:00 PM
We all knew this was coming. I suspect half the people on this board will now disappear into the void.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: william on November 06, 2013, 11:00:00 PM
We started discussing this here...
http://www.lendacademy.com/forum/index.php?topic=1716.0

from: brycemason on November 07, 2013, 01:45:51 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: New Jersey Guy on November 06, 2013, 11:00:00 PM
"Yes this completely obliterated my amazingly lucrative strategy but that will not stop me from finding a new one."

I see this making a big mess for relisting.  How are we supposed to keep track of the "4 Business Days"?  If I have 22 notes cancel over 4 days, how am I supposed to remember which ones will qualify for relisting tomorrow?

Secondly, 4 days off the market?  That's a lot of time to have a note just sitting there doing nothing.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: DanB on November 06, 2013, 11:00:00 PM
from: New Jersey Guy on November 07, 2013, 02:16:49 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: core on November 06, 2013, 11:00:00 PM
from: New Jersey Guy on November 07, 2013, 02:16:49 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 06, 2013, 11:00:00 PM
Many people were using the IGP trick as a basis of their trading strategy. Half is hyperbole. Maybe you're right and they'll just adapt to a new way.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Fred on November 06, 2013, 11:00:00 PM
from: New Jersey Guy on November 07, 2013, 02:16:49 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Bohb Daishi on November 07, 2013, 11:00:00 PM
from: core on November 07, 2013, 08:11:16 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Joleran on November 07, 2013, 11:00:00 PM
from: Bohb Daishi on November 08, 2013, 03:18:42 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 07, 2013, 11:00:00 PM
"Secondly, 4 days off the market?  That's a lot of time to have a note just sitting there doing nothing."

"It still accrues interest to the note holder."


Doesn't mean a darn thing if the borrower isn't paying to begin with. 
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Ran on November 07, 2013, 11:00:00 PM
from: New Jersey Guy on November 07, 2013, 02:16:49 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 07, 2013, 11:00:00 PM
" If I am a professional like New Jersey Guy, I will not complain"

Now, now now!  I just had this conversation with DanB this morning!  I never participated in that "grey area" of trading!  Despite what you might have read, I do have a conscience.

Besides, my Folio forte' is fleecing the elderly out of their life savings.

Anybody interested in a bridge?
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 07, 2013, 11:00:00 PM
from: New Jersey Guy on November 08, 2013, 04:07:53 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: yaoyao on November 07, 2013, 11:00:00 PM
This new change also means that we will no longer get cancelled orders due to payment.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Joleran on November 07, 2013, 11:00:00 PM
Quote"> from: yaoyao on November 08, 2013, 05:21:51 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: GS on November 08, 2013, 11:00:00 PM
Yesterday, I had my first note miss a payment since the rule change.  I figured it would go to IGP and I could put it for sale today.  NOPE.  Now it's listed as Processing Payment Plan, with a new withdrawal date scheduled in a few days, and won't let me post it.  I assume that by time I'm allowed to post it for sale (assuming the second withdrawal attempt fails), it will be at or near 16 days overdue.  I'll have to see how this plays out. 

LC blew it with the way they are handling this.  I can understand why they wanted to close the loophole, but I can think of a few better ways to do it than this. 
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Ran on November 08, 2013, 11:00:00 PM
from: GS on November 09, 2013, 11:27:26 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 08, 2013, 11:00:00 PM
from: Ran on November 09, 2013, 12:35:46 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 08, 2013, 11:00:00 PM
from: Joleran on November 09, 2013, 03:14:06 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: New Jersey Guy on November 08, 2013, 11:00:00 PM
I just logged onto my Folio account and saw that the number of notes I had for sale had decreased.  Sales?  NOPE....CANCELATIONS!  Now we're not even safe on weekends!

My notes are dropping like flies!
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: core on November 08, 2013, 11:00:00 PM
from: New Jersey Guy on November 09, 2013, 05:44:03 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 08, 2013, 11:00:00 PM
FWIW, the "processing" status on my IGP note did clear up today and I was allowed to list it.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: DanB on November 08, 2013, 11:00:00 PM
from: core on November 09, 2013, 07:12:45 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: LC Adv on November 09, 2013, 11:00:00 PM
I think Folio was established so as to give people the capability of selling out if necessary ( i.e. in case of emergency etc)., or just to be able to state that there is a way out if necessary due to extenuating circumstances. I do not believe the intent had ever been to create a robust fully transparent "Note Exchange", as should be obvious from the fact that LC makes nothing from exchange trades. As for people in Folio only states, the intent was not to enable them to participate , but as an aside the question came up of how do we who live in Folio only states participate and the off the cuff answer was -use Folio. But rather than having disgruntled investors dragging in all the Securities regulators it may be easier to totally restrict out all the "Dubious Transactions" which may ensnare all sorts of "non-Dubious Transactions" as collateral damage and just allow the original transactions Folio was created for. The Emergency exit for a portfolio.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 09, 2013, 11:00:00 PM
from: LC Adv on November 10, 2013, 09:22:05 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 09, 2013, 11:00:00 PM
You do an online transaction and purchase 100 shares of ABC stock.  The next day, ABC declares bankruptcy.  Feeling you got screwed, you call your brokerage firm and tell them you don't want the stock and they should refund your money back.  They tell you that the proposed bankruptcy was no new news, and you should have done your due diligence. 

Congratulations.....you own the stock.

This has been the problem for Lending Club all along.  Cry babies who call them up asking for Folio reversals because they get buyer remorse.  LC is not Folio!  If Core sells a note to me at a 20% markup, shame on me for being so stupid!  If you buy a Processing note that goes IGP in two days, shame on you for not looking!  It doesn't matter what kind of cheating system you claim the seller was using.  His system is NEVER good enough to force you to hit the "Buy" button. It all comes down to common sense which apparently, many investors don't have.

Personally, I think LC should have just continued with their online warnings which continually separated them from Folio.  Eventually, most of the fools would get the hint.  Despite this, though, there are still a few brain-deads out there who really need to be taken off of life support. 

Oh, by the way.  I had a sold note get cancelled today.  Sunday.  No day is safe.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 09, 2013, 11:00:00 PM
Core.............In the longer term I believe that individuals who have exhibited the tendency to have multiple "emergencies" in rapid succession, (ex. more than 1 emergency per day) be put on a temporary "no selling" list until an independent investigative commission can hear their case thoroughly & determine the nature of these alleged legitimate emergencies. :)

In order to insure that each case is exhaustively & impartially investigated I believe that investigations need to be conducted by a non-LC employee. I realize that I am way too controversial for this post (plus I'd die of boredom) so I recommend none other than the former unrestricted Q&A Grand Inquisitor known to veteran LC investors as RetiredUSMC, to head this investigative commission. He will have the authority to ask an unlimited number of questions (all in CAPS)  :) & for as long as he deems it necessary in order to determine the nature & pattern of these "emergencies".

Upon completion of this investigation (which may involve 20 or 60 emails & take anywhere from 10 to X amount of days), the probationary offender (ex. Core) will either be allowed to continue his activities without restriction for 3 months pending further review, have already expired through natural causes or be told that a permanent restriction be placed on his account barring no more than a total of 60 buys & sells per month. (this number may be further restricted without notice) 

Other investors need not be concerned regarding any of the above because the salary of the Grand Inquisitor & his staff will come out of a special excise tax on only the investors who exhibit the 2 following characteristics:
1. Extraordinary return numbers within the top 1% of all investors.
&
2.Who also seem to experience a lot of daily "emergencies" in their life. :)
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
Amen about the cry babies bothering LC due to their own lack of common sense.  No matter how many protections you add, there will never be a way to compensate for sheer stupidity.  If someone wants to lose money badly enough they will find a way.  What wil happen once you add so many protections that penalize the seller is eventually you reopen loopholes on the buying end.  Prosper, for example, is wide open to such things. 

from: New Jersey Guy on November 10, 2013, 11:19:37 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
from: DanB on November 10, 2013, 11:53:48 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: rlv99 on November 10, 2013, 11:00:00 PM
I believe that there may be other reasons for these new rules.

From other threads on this site, we all know that LC's payment processing and collection procedures are fraught with inconsistencies and very possibly erroneous.  The payment and collection logs are vague, illogical, variable from one loan's log to another, and changable thereby making the logs of little help when attempting to determine the real ststus of a loan's payment history.

Since we pay LC to collect and post the payments to our account, these new rules, imo, help to insulate LC from accusations of mismanagement and/or breach of fiduciary responsibilty since payments on loans in the process of being collected can no longer be traded.  Presumably, these new rules give LC about 10 days to get their collection "act" together.  It will be interesting to see if they use this extra time wisely.
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: DanB on November 10, 2013, 11:00:00 PM
Quote"> from: core on November 11, 2013, 12:28:53 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: yojoakak on November 10, 2013, 11:00:00 PM
Quote"> from: core on November 11, 2013, 12:19:42 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: core on November 10, 2013, 11:00:00 PM
from: yojoakak on November 11, 2013, 09:37:41 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Bohb Daishi on November 10, 2013, 11:00:00 PM
from: core on November 11, 2013, 09:48:08 AM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
from: Bohb Daishi on November 11, 2013, 12:06:13 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: Joleran on November 10, 2013, 11:00:00 PM
Do we have any confirmed sightings of what happens when a payment is posted on a note for sale after the changes?
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
from: Joleran on November 11, 2013, 02:10:53 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
from: core on November 11, 2013, 02:37:01 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
from: Joleran on November 11, 2013, 05:15:17 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 10, 2013, 11:00:00 PM
from: core on November 11, 2013, 05:37:13 PM
Title: Starting today, Folio prevents selling notes with processing payments.
Post by: TravelingPennies on November 11, 2013, 11:00:00 PM
from: core on November 11, 2013, 01:17:57 PM