P2P Lending / NFT Lending Forum

Crickets are overtaking the forum.  For those of you still checking in periodically, what's next for you?

Here's an interesting note that just popped up on my September statement.  Had only one charge off.  Interestingly according to the note, it was charged off 5/28/20 and yet it finally appears on my September statement?  What gives LC?

And I'm sure many of you had the issue that I've experienced that notes were listed as current, NOT on hardship plans, AND the last payment was 2-3 months ago.  When I called LC about it, they were aware of the "technical issue" and had a team working on it with no anticipated resolution date.

Here's another interesting question.  After the platform closes down for new investments and five years goes by, presuming 5% of these notes charge off, how long will your accounts remain active to collect any charge off recoveries?  Among my accounts, I have two that have drawn down to zero with no active notes.  I still receive recoveries each month of a couple dollars.

Will LC maintain our accounts for another 15 years or buy out the charged off debt from us?

Will it be simply an "introductory offer" valid only for your initial opening deposit?  Or expires after 12 months.
Will there be a minimum deposit maintained amount of say $10,000 in order to achieve it?  Otherwise it reverts to 0.01%.
Will it be  the scenario of only up to the first $3,000 and then any amount above that is the standard rate of 0.01%?

Yes, they cut my business credit line in half as well.  Only affect is the change in debt-to-limit ratio.  Funny though that at my brick and mortar bank, BECU tripled my limit which negated what Capital One did.

I think I was fortunate.  In the three short weeks we were given, I managed to liquidate everything besides hardship loans (~30), <120 days remaining (~30), and headed down the path towards default/charge off (~15).  Roughly $3,500 sold and $350 remaining.  Now time to transfer and combine the accounts into one which I currently hold $6,600 in (taxable).  I'll still work it there for awhile and see how things play out over the next year or so to see if LC makes any kind of comeback.  Otherwise, I'll just let it bleed out a slow painful death.

Current holdings of the account I am keeping open (before transfer of other accounts assets into it):

My Notes at-a-Glance  2582
Not Yet Issued                  0
Issued & Current          799
In Grace Period              11
Fully Paid                  1,455
Late 16 - 30 Days            6
Late 31 - 120 Days         15
Default                            1
Charged Off                  295
Cancelled & Cancelling      0

Any idea the policy on dormant taxable accounts with zero active notes and holding only charged off notes?

As long as account ownership is the same, yes you can.  I liquidated my SEP IRA last year and the only thing left in it were charged off loans that *occasionally*  post recoveries.  Being that I owned a taxable account as well, all I had to do was fill out a form "relinquishing" the charged off notes to the taxable account.  The charged off notes were placed into a separate portfolio named by LC.

I'm in the process of doing the same with my wife's Traditional IRA.  I only had to add her name to my taxable account to accomplish it (changing it from an individual account to a joint).  Unless somehow it involved Folio, I don't see any issues with it.  When I did the first conversion, there were no Folio fees involved.

Could you provide a few example notes?

I have experienced the exact same thing.  "Supposedly marketable" since you can "list" it, but they won't list them as if they are in default.  If you can list a note 30-120 late, but not hardship, something is W-R-O-N-G.  No way around it.  Dancing around another potential class action by investors?

I ran into this same problem several months ago.  I don't recall anything about a "deferred status."  Called LC and they were aware of the issue.  After 2-3 months the problem cleared up.  Never found out what the underlying problem was.

When you get down to $10,000 value remaining and approaching your renewal date, contact LC and request that they continue to cover the annual $100 fee.  Explain that you are winding the account down.  They're VERY familiar with people doing this (evacuation of the retail side).  They'll gladly cover it.  Took me two waivers on my one SEP IRA to accomplish it.

B.  I just finished winding down my $16,000 SEP IRA a month ago.  Did a direct trustee-to-trustee transfer of $15,000 cash awhile back at a fee of $25.  Ran into issues liquidating my last 30 some odd notes due to platform issues.  Finally sold those off and did a rollover of the remaining $1,000 of cash at a fee of $50.  (Total costs of $75 vs the $250 indicated on their site.)

Leaving only paid off and charged off notes.  Working now on getting those transferred over to one of my taxable accounts.  Big issue with that now is they no longer support linked accounts under one login/email.  So now they're working on separating my four taxable accounts by breaking the link.

Just finished winding my wife's Traditional IRA with one annual fee waiver as well.

I am wrapping up the process myself.  I imagine most people who wind down their IRA's with LC / Strata sell off their active notes until all that is left are charged off notes.  In my case, I sold off about $15,000 ($25 fee) leaving about $400 left.  I direct transferred trustee-to-trustee the cash balance while I worked on selling off the remaining active notes which I finished doing 2-3 weeks ago.  I've submitted for the remaining cash to be a rollover check sent to me which I just received.  LC is supposed to now transfer the remaining charged off notes (69 of 384 notes) over to one of my taxable accounts where any recoveries can still be received.  I am still waiting for LC to complete this part.  I have done the same with my wife's IRA and am working on moving the funds now.

Then my remaining taxable accounts will be wound down either by sale or attrition of the active notes until I have them all combined into on last taxable account.  I don't know yet what I'll do with that final account yet.  Probably hold onto it and keep dabbling with it to see if there is any future major improvements by LC.

If you go to the link and then scroll down, you'll see the offer.

Honestly, I may have been mistaken before.  When you click on the link, the page displays what appears to be a message indicating a page error.  However, when you scroll down, the Kasasa offer is displayed.

I am in the process of shutting down my SEP IRA this past week or so (~$240 cash in Strata, 69 charged off notes remain).

I spoke to Strata first and detailed my intentions of rolling (not direct transfer) the remaining cash and paying any fees with outside funds.  They stated quite certainly that there would be just a $50 final account termination fee.  I then spoke to Nate at LC.  He sent me the Account Closure Request (Strata form tweaked with LC logo and allowing the premature distribution WITH exception (something that is omitted on Strata's form quite specifically.))  The LC form gives a breakdown of Strata fees which appears to be different than the original form I received when I opened the account.  This form indicates account value < $10,000 fee of $50 and >= $10,000 fee of $150.  I originally thought the closure was going to run me $200+.  He also sent me a separate form for the transfer of the charged off notes to one of my taxable accounts.  I have a total of six accounts (2 IRAs and 4 taxable).  These will all be funneled down to one final account as a basket for all of the charged off notes.

If this plays out as described, total fees will run me $75.  $25 from a direct partial transfer of $15,000 last year and then this $50 for the final rollover.  Better than the $150 if I closed it all at once.  Probably could have avoided the $25 last year if I did that as a rollover as well as Strata told me there was no fee for checks.

I just got a followup email from LC indicating they received the paperwork and it is in process...
"...Your documents have been received! We're currently reviewing them and we'll be sure to get back to you with any updates as soon as possible. Typically, the account closure and Note transfer process can take 2-3 weeks to be fully completed..."

Hopefully this IRA will be wrapped up by the end of Jan or first of Feb and will post back with the final results.

Yes, I had seen the offer last week after the original post.  Put it off thinking it was a long term offer as I had seen the same deal mentioned on several other sites.  Then went to dig into it more and POOF! it was gone.