Skip to main content
Skip this menu

Show Posts

This section allows you to view all posts made by this member. Note that you can only see posts made in areas you currently have access to.

Messages - david450

Investors - LC / It looks like I bought a note that was already paid off.
« on: January 08, 2015, 12:00:00 AM »
had same experience and apparently same conversation with LC

This is one of the things that can happen because of the way LC processes payments.

I don't think it was still listed after the final payment has been processed, but the fact that LC back dates the payment to the last normal
payment raises the red flag.   (hopefully new accounting rules will make some beneficial changes here).

I see it as a variant of the note on which you lose money from because the borrower pays off early.

After many iterations with LC, I came away with the idea that a loan paid off after a normal payment, but before the next one is treated like a late payment of principle on that former payment,  subject to a late fee if LC so deems it, but no interest.

(and of course they won't deem it if this is one of the borrowers they have incented to take out a new loan at a lower interest rate).


Investors - LC / Change to note status updates
« on: December 09, 2014, 12:00:00 AM »
I chased the same type of things ------ after several iterations with LC phone/email support this is what I got:

Current Practice:

    When a loan is fully paid off between  normal payment  N and N+1, it is back dated to N and there is no interest collected for the period (and thus non-payed).   This is because (I am told) LC does not do daily interest accounting, only period. 

Future Practice:
   (On loans originating after October )---- LC will collect and distribute the for the period between N and day full payout is processed.)

They could not tell me why this was hooked to Loans originating after October even though borrower is not aware they will not be paying interest on outstanding balance pending that full payout.

They reminded me that under a recent policy, when a loan is paid off during the first year, the investor only pays the normal payment service fee and I should be happy for that.

---I am happy for that, but floor by the other.