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Payment - Settled In Full

Started by Peter, November 19, 2013, 11:00:00 PM

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core

Got them, Bohb.  Thanks!

If anything good happens with them I'll be sure to post a follow-up to rub it in keep you updated.

Bohb Daishi

I just picked up another one of these notes. It makes me really curious what the "Payment - Settled In Full" log really means...

 https://www.lendingclub.com/account/loanPerf.action?loan_id=708969&order_id=14230741&note_id=4218269" class="bbc_link" target="_blank">https://www.lendingclub.com/account/loanPerf.action?loan_id=708969&order_id=14230741&note_id=4218269


Keltset

This is directly from the borrower agreement I received when taking out my loan here. (I'm still waiting for it to be issued but I'm a long term investor here as well and see no reason for it to not complete)

"Prepayments and Partial Payments. Borrower may make any payment early, in whole or in part, without penalty or premium at any time. Any partial prepayment is to be applied against the principal amount outstanding and does not postpone the due date of any subsequent monthly installments, unless Lender otherwise agrees in writing. If Borrower prepays this Note in part, Borrower agrees to continue to make regularly scheduled payments until all amounts due under this Note are paid. Lender may accept late payments or partial payments, even though marked "paid in full", without losing any rights under this Note."

Based on what I bolded from the borrower agreement, there is no liability to LC to cash a check marked "Paid In Full" that obligated them to treat the note as fully settled. I believe they are just notating that the check was marked as such and would continue any standard payment methods or collections methods as needed on the account. One of the note links I had clicked on and reviewed indicated that there were collection efforts after the notation on the payment. Had I seen this thread earlier, I would have offered to purchase those notes from you https://forum.lendacademy.com/Smileys/default/wink.gif" alt=";)" title="Wink" class="smiley" />


Edit: Actually this was from the Loan Agreement, not borrower agreement.

brycemason

Of course, LC's agreement with the borrower cannot fly in the face of the California statute which trumps it. It seems the law would win out. It's like a state making a law that opposes federal law, which would hold. Go go severability clause.

TravelingPennies

I'm not entirely certain what California law is under the matter but I do recall reading about a few court decisions and the primary court decision sticking out in my head is nelson v. fire insurance exchange in which the decision, if I recall correctly, was that there was no reservation of rights and thus the check cashed indicating that the claim is resolved in full does constitute an agreement to resolve the outstanding amounts and resolved any potential further action from claim.

What I had read into the failure to reserve rights was that they failed to protect themselves such as I would view LC's clause... I'm not a lawyer though and this is also from memory. Either way it has peaked my fascination.

Are all of these loans governed under CA law, or do they reside under the host (residing) state of the individual borrower where case-law and written law may differ state to state?

TravelingPennies

Why would a loan originated by a Utah bank and sold to a Delaware company be governed by California law?

At any rate this whole deal is ridiculous.  For one, it says SETTLED in full, not paid in full.  And LC wouldn't build in a whole different status message in their system to log it in case some crackpot tries some trick that he read about once.   If they wanted to log it there are plenty of other ways to do so which would be more clear to everyone involved.  Hint: The word "Settled" would not be a part of it.  "Nut" might be.  "Refuses to pay" is even better.  Also, you will note that no payment is logged near the date of that notation for the notes in question.

Next y'all are going to suggest that the borrower offered to pay his debt in pennies, LC refused it, and that's what the notation means.  It makes just as much sense.  This thread is on-target to get as funny as that one where you guys thought LC was providing bankruptcy counseling when people called up.



TravelingPennies

You paid 85... I'll take one for 90 https://forum.lendacademy.com/Smileys/default/tongue.gif" alt=":P" title="Tongue" class="smiley" /> Ha.... I'll just worry about it when / if I ever come across one...

TravelingPennies

Looks like the old "Payment - Settled In Full" log was just changed to "Borrower completed all payments for the negotiated settlement amount and will not be making additional payments".

I'm glad I offloaded those notes to Core...  https://forum.lendacademy.com/Smileys/default/wink.gif" alt=";)" title="Wink" class="smiley" />

NEW LOANS:   | 870.eth 2.500 Ξ | 804.eth 2.500 Ξ | remoraid.eth 0.299 Ξ | ALL