P2P Lending / NFT Lending Forum

the "flaw" in p2p lending to me was that lc prosper etc. dont have the incentive to collect like a normal un-secured creditor would..... the collection effort is very poor and spotty. It looks to me like collectors almost breathe a sigh of relief when the customer doesnt answer the phone. When they do by chance get a customer on the phone many times nothing is resolved. It seems like accounts just for the most part work there way through the various stages of delinq and then are charged off with nothing more than a "oh well".......i worked in collections through out my 30 years in consumer lending and have never seen anything like the lack of effort to collect accounts. I will continue to buy notes on lc and prosper but will never get carried away with the amount invested ie ( hobby $)

i just pulled some $ out of lc to buy some cef's that had been yielding around 9% for years and had all of sudden pulled back to yield as high as 13%.... im just a small guy but i do wonder if investors appetite will change if other possible investments start yielding more than what is possible to obtain on lc....also initiated some postions this week in some mlp's that had been yielding 6%ish that are up around 9%

https://forum.lendacademy.com/index.php?topic=3221.msg29176#msg29176">Quote"> from: rawraw on June 11, 2015, 12:41:35 PM

https://forum.lendacademy.com/index.php?topic=3253.msg29163#msg88888888Quote"> from: pplinvestor on June 10, 2015, 10:43:26 PM

for what its worth i have also (for the first time in three years) started to buy more A,B and C notes. I have experienced the same recent trend of very quick defaults only 2-3 payments in on D,E,F & G notes no matter how good they looked when purchased. I am now also requiring a 700 plus fico score minimum. What is concerning is my LC account has far more deliquincy than my Prosper account currently. I have been buying with very similar filters and the accounts have almost the same number of notes so Im starting to believe Prosper is doing a better job underwriting right now. It also seems like many more delinquint notes pay there way back to current status on prosper rather than just tumbling down the delinquint chute to default status on LC. I am watching close and wonder since going public if LC isnt cutting corners for volume sake.

i usually get a bk notice a week or so later when this pops up...sorry for the news

the nice feature of any cef wheather it be a equity or bond fund is they never have to sell their holdings to meet redemptions like an open ended fund...so when the mass'es hit the exit all at once they can hang on to the bond or equity and are not forced out at the bottom..... i have enjoyed p2p lending for over three years now and have done "ok" ....7.6% before taxes but this return will not last once i start to just liquidate the accounts and if the economy wilts good luck to everybody here... just like a market rout you will not be able to sell a good note for .80 cents on the dollar

i think the smartest way to treat p2p accounts is to keep it to no more than 5% of your total investment portfollio.... i am under this % and have stopped adding to both my lc and prosper accounts...currently i am reinvesting the payments received but will stop even doing that in a couple of years and then start drawing the accounts down for income ( i am 59 and retired)

yup...just like the old "customer chooses to mail the payment"....funny how it never arrives!

yes age of portfollio is probably the most important factor ...i had zero chargeoffs for the first 9 months...but had a couple of bk's that were going to be

for me lc notes will never replace a bond portfollio....for one simple reason stated above when someone defaults on a lc loan for the most part we the investor lose all our principal.... i have suffered one or two bond defaults in the past 15 years and because the were sr secured bonds went on to recover over 80% of my principal... i view my p2p accounts as just another asset class which will never be more than 5% of the total pie...i will say its kinda fun

i would for what its worth at least email them that they should be filing an objection which is very easy to do on this chap 7..... so at the very least the debt is not discharged

starting to see more and more of this as of late....a last ditch money grab right b4 the consumer pulls the plug....lc and prosper should be represented at the first meeting of creditors and also file a objection to the bk plan...will they? who knows

the credit score in this case would still be badly damaged

lc needs to "tighten up" their collection effort and collection notes...for the most part it seems they just go through the motions...anyone with lending exp will tell you that consistant and concise collection effort is an intergel part of any lending operation...seems like lc has more accounts than they can handle on a daily basis collection wise.... they need to be more aggressive also imop