P2P Lending / NFT Lending Forum

I currently have over 70,000 active notes and easily have double that amount purchased since Lending Club opened their doors. I've never looked to see if I was ever reimbursed for an identity thef loan but I think I keep a pretty good eye on my account and would have noticed that. Excellent question and one as a group of investors would be worth getting an answer to.

I have both a Prosper & Lending Club IRA that I've been withdrawing from on a monthly basis for several years.  The way I figure the amount that I draw are the same for both but how I withdraw is different.

I take my Account Balance (Prosper) or Adjusted Account Value (Lending Club) from the end of the month and subtract the amount from the start of the month and add in any amount I withdrew during that period.  This gives me (in a simplistic manner but it works overall) the amount of interest earned that period.  Should I withdraw more, then I'll be pulling from principal, less then the account increases, or maybe just take what it earned and the account remains neutral.

I have both the IRA custodians, Equity Institutional (Prosper) and Self Directed IRA (Lending Club) set up to automatically withdraw whatever cash is in my account (the IRA custodian account mind you) once a month.

My Lending Club is four times the size of the Prosper due to a variety of reasons not part of this topic.  Let's assume Prosper "earns" $500 and Lending Club $2,000 for the month of February.  With Self Directed IRA, I have it set up to transfer on the 1st and Equity Institutional on the 15th. 

Staring with Lending Club, I've decided I'm going to withdraw $2,000 during March and will get that money on 1 April.  I am using nsrplatform to invest and could wait until the cash in the Lending Club account reaches $2,000 and do a transfer but that means I've missed out on buying loans for that time.  Since I'm able to transfer from Lending Club to Self Directed IRA instantaneously on-line, I break that $2,000 into four transfers, transferring $500 each week.  This allows my account to continue buying loans with cash not transferred.

Prosper is different in that I cannot do this on-line but rather have to send an e-mail to someone at Prosper to initiate the transfer.  I'd say about 3 out of 4 times, that works the first time but it's not uncommon for have to follow up once or twice to get the transfer started.  It then goes to accounting and then the money is transferred to Equity Institutional.  It typically takes about a week to see the money transferred.  Given the hassle with this, I only withdraw once from Prosper, so in our example, I would e-mail to have $500 withdrawn shortly after the 15th of March (for 15 April into my bank account) to give Prosper plenty of time.  For four years I've asked the three "account executives" that have been assigned to my account if we could allow on-line transfers with the response, "That would be nice, maybe someday".

How the IRA custodians treat the transfer differ as well and one needs to be aware of that.

On the first of the month Self Directed IRA looks to see if any cash is in my account and transfers whatever amount is there to my bank account.  If there is no cash, no transfer and the request to transfer is closed.  Should cash come in on the second of the month or later, it will stay there until the first of the next month.

With Equity Institutional, should there be no cash in the account on the 15th, they hold open the request and if cash comes in later, let's say the 25th, then they immediately transfer that to your bank account and then the request is considered closed.  I completely disagree with that, if I set it up to transfer on the 15th then it should be the 15th, period.  This personally impacted me tax wise when they transferred money just a few days short of me turning 59½ and was unaware then how they treated the transfer. I now understand this and account for it.

One last observation, I've never had any trouble with Self Directed IRA but it has been nothing but problems from day one with Equity Institutional. I believe Prosper now uses Millennium Trust which I know nothing about.

I've been surprised by the lack of chatter on this. Starting yesterday afternoon (Friday, Jan 15), I got notice from NSR my Prosper API was not working, of which I had not made any changes.  Later, I received the following e-mail from NSR:

Prosper's API has been down since approximately 7:00 p.m. EST, today (1/15/16). The outage is resulting in investment orders not being accepted when submitted by NSR, as well as an inability to update account balances and portfolio data on NSR Platform. Prosper is aware of the issue and is working diligently to get it corrected. Please let us know if you have any questions.

Since no one was saying anything, I assumed it was an NSR problem but now that eightball has reported using API on his own is there a Prosper problem?

I've been to many countries in the world and have had no problem accessing both my Prosper and Lending Club accounts on a daily basis via their web sites, including NSRPlatform. I use an iPad that has cellular as well as WiFi. When I use the hotel WiFi I use my VPN. I see no need for an 'app' when the website works just fine, or am I missing something in your situation?

When I first checked the "Management Fees" page, it reflected my actual note & cash balance, not the balance of notes NSR purchased on my behalf.  I sent an e-mail to them about that and was corrected the next day.  Now it reflects what notes NSR bought on my behalf.

If I understand this correctly, the fee shown is over a 3 month period so if your total fee is $27 then you're actually paying $9 a month. To me, that seems quite reasonable as I would assume to be charged a fee for a service and not expect it for free.  Paying for this service helps insure they will be staying around.  I've also looked at the other third party providers and the fee NSR charges is in line with the others.

I will admit, I was really enjoying not paying for this service and tried my best to be invisible but I knew that one day they would catch up with me.

I've not seen interest posted in my account for the last 4 days as well, thought it was just me but read others are experiencing the same thing.