Skip to main content

Author Topic: What is the oldest loan you have that gave you an initial recovery payment

  • Posts: 46
Earlier this month I received the last payment of the last 5 year loan in my account (I had 6 of them). I'm now totally out...or I thought I was. My last loan charged off was about 2 years ago. My last recovery was in October of last year. I figured all the recoveries that I was going to get have been received so I was getting ready to close my LC account. Well...I was wrong.

I just got a recovery from a loan whose last payment was in January of 2015 (5 years ago). It was charged off in June of 2015. I wonder what causes an initial recovery payment of such an old charged off loan?

Just wondering who holds the record for an initial recovery payment of an old loan? Anyone start getting recoveries of a loan that was charged off more than 4 1/2 years ago?
  • IP logged

  • Posts: 29
I had a prosper note that had been charged off about five years come up with full payment including back interest.

I think the borrower in such a situation would be engaging in credit repair.

I would call Customer Service and ask them about how such payments would be handled.
  • IP logged

  • Posts: 4
This would be good to know. If I want to close my IRA account and transfers the funds over, that would still mean I have zombie loans hanging around. Since there is a $40 annual fee for having a balance below $5,000, I too wonder how I can plan to wind down my account.
  • IP logged

  • Posts: 67
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.
  • IP logged