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Author Topic: What to do with notes like these.......

s
  • Posts: 4
What to do with notes like these.......
OP: September 15, 2013, 11:00:00 PM
Notes like these drive me crazy - the payment was due a while ago, yet there is no information saying the payment failed, etc, so I never know what to think.  Usually I dump them at a big loss, then the payment shows up within a day or two.  Any thoughts or advice?

https://www.lendingclub.com/account/loanPerf.action?loan_id=6579184&order_id=9889505&note_id=28068512

Loan ID #6579184

Thanks!
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p
  • Posts: 20
What to do with notes like these.......
#1: September 16, 2013, 11:00:00 PM
It's still in grace period.  The borrower did not use auto payment to make payment and hence there is no payment failed.  It is simply no payment.  LC will not contact the borrower until grace period expired.  Why do you expect LC contact the borrower within grace period? 
You can sell the note with small discount or you hold onto it and take the risk
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R
  • Posts: 484
What to do with notes like these.......
#2: September 16, 2013, 11:00:00 PM
Interest Radar includes Grace period loans in your list of late/default status loans in the Risk tab of My Portfolio. Display the list of these impaired loans and you can click on them one at a time. Typically in the Performance section for that loan "Probability of Curing" is displayed and it's usually 77% -84%. Maybe this will help you with the decision to sell, and help price the note if you do.
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T
  • Posts: 6588
What to do with notes like these.......
#3: September 16, 2013, 11:00:00 PM
Thanks for the tips, much appreciated!  Just to clarify, though, I thought all LC loans were on an auto payment plan?  I was under the impression that borrowers didn't have the option of mailing in a check, etc?

I found this on the Lending Club website:


Normal Course of Operations

The primary method of payment for all Lending Club accounts is via an electronic funds transfer whereby we withdraw monthly payment amounts from the borrower's bank account. When the funds are there, they are automatically remitted to Lending Club for distribution to the individual investors who purchased the Notes corresponding to the loan. If the debit transaction fails for any reason, our member support team will contact the borrower that same day via telephone and e-mail. In the majority of cases, our member support team is successful in reaching out to the borrower. A borrower may indicate to us when funds will be available, in which case we can successfully re-present the payment within a few days.


So I guess it doesn't say that auto pay is mandatory, just that it is the primary method......
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c
  • Posts: 227
What to do with notes like these.......
#6: September 17, 2013, 11:00:00 PM
Oh no, please don't get him started on the collection log again!
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T
  • Posts: 6588
What to do with notes like these.......
#12: September 18, 2013, 11:00:00 PM
Thanks for the info everyone.  Interesting to know that not all payments are the auto ACH type!
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T
  • Posts: 6588
What to do with notes like these.......
#13: September 19, 2013, 11:00:00 PM
The collection log has to be 100% true, otherwise LC would be in a predicament when/if it became necessary to sue the borrower.  And when the borrower calls in next time it is essential that the associate has an accurate record of the previous calls.

The collection log works in mysterious ways.  The nonbelievers will feel the lick of fire on judgement day.
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