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Messages - jps8

#1
LendingRobot / LendingRobot failing to place orders
February 07, 2016, 11:00:00 PM
I've been using LendingRobot for about 9 months now.  About 5 months ago, I noticed a fairly significant flaw in their system, which I have seen repeated on numerous occasions since then.

Specifically, their rules (filters) sometimes completely fail to place orders for qualifying loans.

For example: My rules are currently setup to buy anything with an Expected Return of 12% or higher. Sunday night, after the 6pm round, I checked my buy history and there were 2 loans purchased. I then checked the Latest Loans page (https://www.lendingrobot.com/#/resources/latest/LC/" class="bbc_link" target="_blank">https://www.lendingrobot.com/#/resources/latest/LC/) and saw that there were 10 loans with an ER of 12% or higher. (See Attachments)

That's right: 10 loans met my criteria and only 2 of them were purchased.

A few things to clarify: My account had more than enough cash on hand to purchase all 10 loans. Also, when I checked the Latest Loans page all 10 loans were still available for purchase. In fact, I went ahead and manually purchased the 8 loans they failed to place orders on.

I've been discussing it with their customer service team since I noticed it (20 weeks ago, according to our chat logs). They've admitted that their engineers are working on the issue, but I have yet to see it be resolved.

Initially, they told me that the issue is caused by loans that "trickle in" after the scheduled feeding time. They claim that this only happens to "<0.25% of notes", but this seems implausible given how many loans they fail to order for me in this last round (80% vs 0.25%).

Also, I was told that: "Lending Club doesn't let us know when notes will trickle though - so it is a guessing game if/when they are sent out.  The danger is that if we query their server too often, LC's servers block us ( DDoS attack reasons).  This means a few of the notes get through our net.  Our calculations show the result is negligible, since most of the notes that slip through are not ones we would invest in, anyway."  This sounds legit on its surface (who wants to be shut down for DDoS reasons?) except that eventually, at some point after feeding time, LR is catching the loans in question. How do we know this? Because they show up on LR's Latest Loans page! Without regard to when they "trickle in", LR is getting these loans and scoring them with an Expected Return. For whatever reason, LR appears to not be executing orders on these loans when this happens. Furthermore, their comment about the results being negligible because they are loans are ones that they wouldn't buy anyways is clearly false on both points.

A few weeks later, when I reported the issue again, they apologized for the issue and assured me that "The tech team is in full resolution mode." I immediately called BS on this comment, because they were in the midst of rolling out support for Funding Circle. How can you be in "full resolution mode" and rolling out support for a new marketplace at the same time?

Most recently, they've been telling me that there is no problem because my Win Rate is 100% (i.e. what percent of orders placed are actually fulfilled). However, this doesn't seem to be an issue of the "win rate"  - it seems to be that they just aren't placing the orders in the first place.

Besides this major issue, there have also been numerous other bugs throughout the past few months (Rounding errors on the ER filters, Protocol issues with Prosper & LC, my Prosper account showing a $0 balance, AUM and Expected Return on Managed Principal fluctuating wildly, rules not responding to edits correctly, etc) but most of these seem to get sorted out within a few days/weeks. I've even been congratulated by their customer service team for catching and reporting a few bugs to them.

Ultimately, the truth remains: LendingRobot is failing to place orders on loans that match my filters and they have not been able to fix this over the last +20 weeks. And since placing orders based on filters is fundamentally what their service is meant to do, I'm not sure why I should stick with them.

Has anyone else had this issue?