P2P Lending / NFT Lending Forum

Lending Club Discussion => Investors - LC => Topic started by: jheizer on October 06, 2020, 11:00:00 PM

Title: RIP Lendingclub Notes
Post by: jheizer on October 06, 2020, 11:00:00 PM
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Title: RIP Lendingclub Notes
Post by: core on October 06, 2020, 11:00:00 PM
I swung by here to see if I had really read that email correctly.

The email reads like they are "only" retiring the Notes platform.  But ummm... what the heck is left of LendingClub without the notes platform?  Am I missing something? Perhaps they are just trying to put lipstick on a pig.  Which is fine with me, as long as one's porcine recreational activities stop there.

As an existing Radius Bank customer, having another account isn't all that $exciting.  But they are good for various schemes.
Title: RIP Lendingclub Notes
Post by: t_b_o_t on October 06, 2020, 11:00:00 PM
from: core on October 07, 2020, 10:52:17 AM
Title: RIP Lendingclub Notes
Post by: BruiserB on October 06, 2020, 11:00:00 PM
Wonder if they just mean the retail notes platform?  Still serving commercial customers and their own bank with notes?
Title: RIP Lendingclub Notes
Post by: Peter on October 06, 2020, 11:00:00 PM
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Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 06, 2020, 11:00:00 PM
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Title: RIP Lendingclub Notes
Post by: bkcarp00 on October 06, 2020, 11:00:00 PM
Sounds like they are basically giving up on the whole "peer-to-peer lending" model and turn into a Wealthfront/Robinhood/Betterment type of company but with an actual bank charter. They will probably keep some lending in place but it will only be for the other big banks/companies/funds that buy the whole loan instead of little pieces. Really this is the end of the original lendingclub model and transformation into a totally new company. Only problem is they are years behind those other companies so it's going to be a hard hill to climb to transform from a peer-to-peer lending company into a totally different model with more competition.
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 06, 2020, 11:00:00 PM
from: bkcarp00 on October 07, 2020, 11:06:10 AM
Title: RIP Lendingclub Notes
Post by: Edward Reid on October 06, 2020, 11:00:00 PM
Sad, but it hardly makes any difference to me. I've been blocked from buying notes for about a year now, and it's been obvious that restoring my capability was not on LC's radar. I've been pulling cash out as it accumulates, and assuming that the game has already ended.

It will be convenient (slightly) to have these transfers done automatically. They trumpet a "high yield" savings account. Did no one notice that "high yield" is associated with low grade bonds? Of course it's actually an FDIC insured account, but the use of those words is poor marketing.

And what will that yield be? That's conspicuously missing from the email. Perhaps 0.05% instead of 0.01%? Oh joy. Capital One has recently been advertising accounts paying "five times the national average" without saying exactly how close to zero that average is.

Edward
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 06, 2020, 11:00:00 PM
from: core on October 07, 2020, 11:12:18 AM
Title: RIP Lendingclub Notes
Post by: GsInvestor on October 06, 2020, 11:00:00 PM
I suspect this. My gut was just telling me this was going to happen. I have about 250k in lending club, just rolling over the payments month after month. Out side of Propser and FundingCircle are there any other investment platforms similar to lending club ?
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 06, 2020, 11:00:00 PM
from: Edward Reid on October 07, 2020, 11:27:04 AM
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 06, 2020, 11:00:00 PM
from: Edward Reid on October 07, 2020, 11:27:04 AM
Title: RIP Lendingclub Notes
Post by: YellowSeed on October 06, 2020, 11:00:00 PM
If you really want to still invest in these notes, Prosper is still there.  I wonder how long they will offer P2P notes.
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 06, 2020, 11:00:00 PM
LC stock up 6% today.  The market thinks this is a positive development.
Title: RIP Lendingclub Notes
Post by: YoungFred on October 06, 2020, 11:00:00 PM
Interesting development. Would appreciate any insight on the following:

1. Does LendingClub plan on maintaining individualized loan selection on the whole loan channel?
2. Does Prosper have similar plans to eliminate the fractional loans channel?

Title: RIP Lendingclub Notes
Post by: trixh0 on October 06, 2020, 11:00:00 PM
Quote"> from: YellowSeed on October 07, 2020, 01:20:47 PM
Title: RIP Lendingclub Notes
Post by: jrr6415sun on October 06, 2020, 11:00:00 PM
this makes sense why they didn't bother to renew their florida license for over a year. They've probably been planning this since then. I've been gradually taking out my money since they've had me blocked for so long.
Title: RIP Lendingclub Notes
Post by: MarinBB on October 06, 2020, 11:00:00 PM
from: YoungFred on October 07, 2020, 02:00:22 PM
Title: RIP Lendingclub Notes
Post by: lctz on October 06, 2020, 11:00:00 PM
They turned into a bank.  They start to offer "high yield" Founders Savings account. which basically means borrow from you at a lower rate and lend it with a higher rate-- a bank by definition.  It is good to the stock.  Instead of passing higher yield to you, lendingclub will keep it.
Title: RIP Lendingclub Notes
Post by: flyp52 on October 06, 2020, 11:00:00 PM
I'd very much like to see LC implement a program to buy out outstanding notes held by retail investors. Maybe it would allow them to shut down the retail platform earlier, especially if they were willing to pay a small premium for the newer notes?

As an LC investor since 2009, it's been a good run.
Title: RIP Lendingclub Notes
Post by: wiseclerk_com on October 07, 2020, 11:00:00 PM
Quote"> from: GsInvestor on October 07, 2020, 11:36:10 AM
Title: RIP Lendingclub Notes
Post by: core on October 07, 2020, 11:00:00 PM
from: lctz on October 07, 2020, 04:39:01 PM
Title: RIP Lendingclub Notes
Post by: BruiserB on October 07, 2020, 11:00:00 PM
from: flyp52 on October 07, 2020, 11:43:21 PM
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 07, 2020, 11:00:00 PM
from: BruiserB on October 08, 2020, 01:19:58 PM
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 07, 2020, 11:00:00 PM
Yea...lol. I see the folio platform went away in August. Shows how much attention I've been paying to LC since I liquidated a bunch in Feb/Mar. I wouldn't be surprised if folio shutting down was one of the nails in the coffin. The at least partial liquidity of the notes made the investment a bit more attractive.

Btw, welcome back, @core.


Sent from my iPhone using Tapatalk
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 08, 2020, 11:00:00 PM
from: BruiserB on October 08, 2020, 01:19:58 PM
Title: RIP Lendingclub Notes
Post by: LA87654 on October 08, 2020, 11:00:00 PM
"Yes LC should waive fees going forward too, "

Aren't they 3rd party fees?  I doubt LC has much leverage anymore if they aren't bringing in new accounts to the 3rd party.
Title: RIP Lendingclub Notes
Post by: Edward Reid on October 08, 2020, 11:00:00 PM
from: flyp52 on October 09, 2020, 02:51:07 AM
Title: RIP Lendingclub Notes
Post by: macroman7799 on October 08, 2020, 11:00:00 PM
I think they're talking about IRA custodian fees for account maintenance and transfer which can be substantial.
Title: RIP Lendingclub Notes
Post by: Edward Reid on October 08, 2020, 11:00:00 PM
Quote"> from: macroman7799 on October 09, 2020, 03:51:35 PM
Title: RIP Lendingclub Notes
Post by: .Ryan. on October 08, 2020, 11:00:00 PM
Quote"> from: macroman7799 on October 09, 2020, 03:51:35 PM
Title: RIP Lendingclub Notes
Post by: jrr6415sun on October 08, 2020, 11:00:00 PM
Quote"> from: BruiserB on October 08, 2020, 05:45:29 PM
Title: RIP Lendingclub Notes
Post by: core on October 09, 2020, 11:00:00 PM
from: jrr6415sun on October 09, 2020, 11:56:27 PM
Title: RIP Lendingclub Notes
Post by: macroman7799 on October 09, 2020, 11:00:00 PM
I think LC has sunk in popularity quite a bit and of course not everyone uses this forum.

Mark
Title: RIP Lendingclub Notes
Post by: Fred93 on October 09, 2020, 11:00:00 PM
Its been clear to me for the last several years that LC had deprecated the retail investor.  We became a smaller and smaller fraction of their total business, and one that they were no longer trying to grow.  The smaller and smaller allocation to retail investors made that clear, as did getting rid of all the retail-investor oriented customer service people. 

This has been a long time coming.  No one who was observant should be surprised.

Clearly their plan was to slowly drive away the retail investors so they could eventually shut down the retail operation with minimum fuss.

Unfortunately, management was never honest about this.  That's a big negative mark for them in my book.

They have accomplished their goal, and have now just admitted it.
Title: RIP Lendingclub Notes
Post by: Rob L on October 09, 2020, 11:00:00 PM
from: core on October 10, 2020, 12:02:39 AM
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 09, 2020, 11:00:00 PM
from: Fred93 on October 10, 2020, 07:01:24 PM
Title: RIP Lendingclub Notes
Post by: Lovinglifestyle on October 10, 2020, 11:00:00 PM
" A long time coming but the end has been obvious for years." , from Rob L, well put--thank you.
If things had stayed the way they were at the beginning I would still be addicted. It was hard to give up.
Title: RIP Lendingclub Notes
Post by: Debt Free on October 10, 2020, 11:00:00 PM
Here's another interesting question.  After the platform closes down for new investments and five years goes by, presuming 5% of these notes charge off, how long will your accounts remain active to collect any charge off recoveries?  Among my accounts, I have two that have drawn down to zero with no active notes.  I still receive recoveries each month of a couple dollars.

Will LC maintain our accounts for another 15 years or buy out the charged off debt from us?
Title: RIP Lendingclub Notes
Post by: storm on October 10, 2020, 11:00:00 PM
from: Debt Free on October 11, 2020, 05:18:06 PM
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 10, 2020, 11:00:00 PM
from: Lovinglifestyle on October 11, 2020, 04:58:54 PM
Title: RIP Lendingclub Notes
Post by: BruiserB on October 11, 2020, 11:00:00 PM
Apparently I did get a message about Folio shutting down.  It came in an August 6th email with the subject line "July 2020 Monthly Statement and an Update on Folio."

In it there was this:

An Update on Folio

As a Folio account holder, you know that historically Folio Investments, Inc. (Folio) has offered a secondary market for Notes, where individuals could buy and sell Notes to and from other investors. LendingClub was recently notified that Folio is being acquired by a financial institution and, as a result, the secondary market for Notes will be discontinued.

Please know that the closure of the secondary market will not affect the Note investments in your LendingClub account, and your LendingClub account will continue to be serviced as usual.

Should you wish to buy or sell Notes on the secondary market, please keep these key dates in mind:
August 26, 2020: The last day you will be able to list a Note for sale. Any remaining Note listings on the trading platform at the end of the day will expire or terminate. Any trades executed on August 26, 2020 will settle in accordance with standard settlement procedures on August 27, 2020.

August 28, 2020: Investor account(s) with Folio for trading Notes will be closed, after which you will be able to log in to view statements and legal agreements only.
While most investors consider Notes to be part of their buy-and-hold long-term investment strategy, we understand that the secondary market has provided a valuable option to those who needed it. We're disappointed in the decision and understand that investors who actively trade Notes will be disappointed too. Because the secondary market has always been offered by a third party, we unfortunately do not control its availability.

As always, please contact us with any questions at the email address below.
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 11, 2020, 11:00:00 PM

Please know that the closure of the secondary market will not affect the Note investments in your LendingClub account, and your LendingClub account will continue to be serviced as usual.


That sure lasted a long time!
Title: RIP Lendingclub Notes
Post by: kib on October 13, 2020, 11:00:00 PM
from: .Ryan. on October 09, 2020, 10:42:30 PM
Title: RIP Lendingclub Notes
Post by: kib on October 13, 2020, 11:00:00 PM
Quote"> from: Fred93 on October 10, 2020, 07:01:24 PM
Title: RIP Lendingclub Notes
Post by: BruiserB on October 14, 2020, 11:00:00 PM
I did e-mail Lending Club to ask about switching IRA custodians as they previously had told me that it was possible to do so.  The new custodian they have recently been using only had maintenance fees if the notes balance went below $5,500 rather than $10,000.  I figured transferring custodians would be one way to avoid the fees.  Below is the response I received.  Summary: no longer possible to change custodians but they will cover yearly fees as account winds down.  Strange part is that they left it to me to contact them once my balance goes below $10,000 to get added to the waiver list.

Thank you for reaching out!

LendingClub will be happy to cover your IRA account maintenance fee with STRATA Trust if your balance happens to fall below the 10k threshold. The fee is assessed on the month of your anniversary with LendingClub (August) so please reach out to us prior to then if your balance drops below 10k and we will add you to our list.

At this point we can no longer transfer you to our new IRA custodian as the funnel for new accounts was closed a week or so ago. With this being said it should not matter as the only difference between the two Custodians was the lower annual fee, however since we will be covering this for you this should not affect you in any way.
Title: RIP Lendingclub Notes
Post by: rawraw on October 18, 2020, 11:00:00 PM
All we need is New Jersey guy and Bryce for the reunion. It was a good run 😊
Title: RIP Lendingclub Notes
Post by: flyp52 on October 21, 2020, 11:00:00 PM
Sure hope Bryce is doing ok after the Direct Lending Investments debacle.
Title: RIP Lendingclub Notes
Post by: lascott on October 22, 2020, 11:00:00 PM
from: flyp52 on October 22, 2020, 01:36:10 PM
Title: RIP Lendingclub Notes
Post by: TravelingPennies on October 26, 2020, 11:00:00 PM
I think he is doing OK.  I tried reaching out to him but we kept missing each other.  I should check on him again
Title: RIP Lendingclub Notes
Post by: HowFree on December 08, 2020, 11:00:00 PM
My wife and I were very early investors in LendingClub notes and opened a STRATA SD-IRA account to invest tax-free.  With the closing of the retail platform, we are moving our account to Horizon Trust to invest in Secured Promissory Notes issued by LCUSA Funding, a subsidiary of LendingUSA which originates consumer loans similar to LendingClub, but they are originated at retail point-of-sale for consumers. 
Title: RIP Lendingclub Notes
Post by: Booleans on January 10, 2021, 11:00:00 PM
I don't suppose Lending Club will continue updating their data on issued loans and payments? It'd be great if we could get one more file on issued loans (covering 2020 Q4) and then still get updated CSV files on loan payments until the end. I've emailed Lending Club to find out the answer and have gotten no response.
Title: RIP Lendingclub Notes
Post by: macroman7799 on January 12, 2021, 11:00:00 PM
I sent a question on January 3rd and still no response. How long should we expect to wait?
Title: Re: RIP Lendingclub Notes
Post by: sean3.eth on June 12, 2021, 12:46:21 PM
Does anybody still have any notes that are still paying off? I still have a couple dozen left.