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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).
--db--
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).
--db--