P2P Lending / NFT Lending Forum

https://forum.lendacademy.com/index.php?topic=21701.msg62178#msg62178">Quote"> from: macroman7799 on October 09, 2020, 03:51:35 PM

https://forum.lendacademy.com/index.php?topic=21701.msg62167#msg88888888Quote"> from: flyp52 on October 09, 2020, 02:51:07 AM

Sad, but it hardly makes any difference to me. I've been blocked from buying notes for about a year now, and it's been obvious that restoring my capability was not on LC's radar. I've been pulling cash out as it accumulates, and assuming that the game has already ended.

It will be convenient (slightly) to have these transfers done automatically. They trumpet a "high yield" savings account. Did no one notice that "high yield" is associated with low grade bonds? Of course it's actually an FDIC insured account, but the use of those words is poor marketing.

And what will that yield be? That's conspicuously missing from the email. Perhaps 0.05% instead of 0.01%? Oh joy. Capital One has recently been advertising accounts paying "five times the national average" without saying exactly how close to zero that average is.

Edward

https://forum.lendacademy.com/index.php?topic=21647.msg61801#msg88888888Quote"> from: JimGasperini on April 28, 2020, 01:58:55 PM

By considering only completed loans, you are biasing your sample toward charge-offs. Consider that you are dividing your notes into three pots: succeeded, failed, and in-progress. By excluding the in-progress, you include a larger proportion of failed. The bias is stronger because failures occur sooner than successes.

Your profile is very risky. Almost 2/3 in the risky DEFG categories, and over 40% the very risky EFG. Some investors make money on such profiles, but the risk is high, so it's likely that you have fallen on the unlucky side of the risk line. Also, such a risky profile means a higher proportion of charge-offs (even when balanced by more profit on the successes), and this exacerbates the bias from excluding in-progress.

Edward

Basically you are saying, LC should help borrowers more due to the crisis. This is a good thought.

But LC already does a lot for those late on payments. Look at the collection log for notes which have been charged off. Many phone calls, messages left, emails sent, paper letters sent, over usually a four-month period. Almost invariably I see one or more of the following:

• Borrower stops answering the phone.
• Borrower does not respond to emails.
• Borrower does not respond to paper letters.
• Borrower tells LC to stop calling (a legal right).
• LC is informed that the borrower is in bankruptcy.

For example, I just looked at a recent charge-off: 130 phone calls (none answered), 3 messages left, 7 emails sent, 3 paper letters sent. (Obviously LC finds phone calls more effective at getting responses.)

I do see loans where LC contacts the borrower and they set up a new payment schedule. Often this doesn't work -- clearly a borrower who is behind in payments is already in trouble -- but the possibility is offered.

As Fred points out, the borrower can still pay off the loan even after it's been charged off. Perhaps someone here with a larger number of notes has seen this happen. I haven't.

If I were a borrower and unable to make a payment, I'd be answering every phone call, explaining my situation, asking what I can do. I don't know how long I'd be able to string it out, but I'd try. The difference of course is that I've never gotten into that situation. Very likely most P2P investors have always been astute enough to avoid that situation.

So really the only thing that might change is at what point LC sends a black mark to the credit reporting agencies. I don't know when that happens -- likely when payments are 30+ days overdue. It might indeed be reasonable to delay that reporting during a crisis.

But what do you do when the borrower won't answer the phone?

Edward

https://forum.lendacademy.com/index.php?topic=18583.msg61682#msg88888888Quote"> from: jrr6415sun on March 05, 2020, 02:15:06 PM

If LC opens it up again, I'll invest again. I'm not planning on it though. I'm withdrawing cash as it accumulates and spending my time thinking about other stuff. Lending Club? Sounds vaguely familiar. Was that a basketball team?

Edward

If anyone figures out what's really going on, I'm interested. Clearly it's something that happened at LC, not in the states, since several got restricted at the same moment. (I'm in Florida.)

Edward

I came here with the same question. I'm guessing it's a bug.

https://help.lendingclub.com/hc/en-us/articles/216127987-Where-can-investors-see-ongoing-collection-activities-on-late-Notes-" class="bbc_link" target="_blank">https://help.lendingclub.com/hc/en-us/articles/216127987-Where-can-investors-see-ongoing-collection-activities-on-late-Notes-

still says investors can see collection activity. Just like always. I think they would have fixed that had the change been planned.

Edward

https://forum.lendacademy.com/index.php?topic=4967.msg44125#msg88888888Quote"> from: Birdsing on January 03, 2019, 10:50:51 AM

https://forum.lendacademy.com/index.php?topic=4858.msg43344#msg43344">Quote"> from: Fred93 on April 26, 2018, 04:56:21 AM

Yeah, borrowing to invest is almost always a bad idea unless you have a guaranteed return, and I mean like FDIC insured. IOW, at least as certain as the debt you owe.

https://forum.lendacademy.com/index.php?topic=4859.msg43343#msg88888888Quote"> from: AnilG on April 26, 2018, 04:33:46 AM

https://forum.lendacademy.com/index.php?topic=4834.msg43268#msg88888888Quote"> from: lendingprosper23 on April 09, 2018, 09:28:14 AM

https://forum.lendacademy.com/index.php?topic=4767.msg42971#msg88888888Quote"> from: Rob L on February 05, 2018, 02:32:27 PM