Author Topic: How to close folio account?  (Read 5837 times)

nonentity

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How to close folio account?
« on: October 15, 2013, 04:13:26 PM »
I opened a folio account when I first started lending club, but I now longer use it. I'm afraid that if someone got my password, they could wipe out my entire account by selling each note for 1 cent.

Is there a way to prevent this from happening? Or how do I close the folio account but keep the lending club account open?

core

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Re: How to close folio account?
« Reply #1 on: October 15, 2013, 04:58:15 PM »
You would have to call LC and I'm sure they could arrange to close that account for you.

However consider this (and this goes for anyone that doesn't even have a Folio account):  Once the perpetrator has your LC password, what is to stop them from simply activating Folio again once they logged in?  I don't know if Folio is still taking 1 business day to activate these or if it's quicker than that.  Either way, you'd have to be very vigilant in checking your email at least daily for any suspicious notifications.

Lovinglifestyle

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Re: How to close folio account?
« Reply #2 on: October 15, 2013, 05:23:53 PM »
Thanks, Core.  You are really the go-to guy to ask what could possibly go wrong with something.  I appreciate your doses of reality.  (no sarcasm whatsoever intended)  :)

cnmor54

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Re: How to close folio account?
« Reply #3 on: October 15, 2013, 05:34:00 PM »
Yeah ... anytime i feel overly optimistic i just go online and get a quick dose of Core-isms.

core

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Re: How to close folio account?
« Reply #4 on: October 15, 2013, 05:45:30 PM »
Yeah, well as they say, it takes a thief...

On further reflection though, I don't even think checking your email daily would help.  The crook could just change your registered email address.  I'll give LC the benefit of the doubt and assume that they send an automated email to your old email address when changing email addresses via the site.  However LC customer support almost never asks for anything more than your name and account number when you call in.  At least for me.  They may or may not use caller ID info for confirmation when I called, but CID data is easily faked for $5/month these days.  All of your information is displayed on the site all in one convenient place for the guy. 

So the best thing for a crook to do would be log in, collect your info, call into LC and have _them_ change the email (likely avoiding the automated notification), change your password, then sign up for Folio and liquidate the account.  While on the phone with LC, for good measure he could also set up a passphrase  or however they handle such things to prevent you from even discussing things with LC regarding your own account.  At least until things are sorted out via snail mail or what not and that could take days... too late for you.

AnilG

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Re: How to close folio account?
« Reply #5 on: October 16, 2013, 12:06:07 AM »
However consider this (and this goes for anyone that doesn't even have a Folio account):  Once the perpetrator has your LC password, what is to stop them from simply activating Folio again once they logged in?

Activating Foliofn trading account requires providing SSN.
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core

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Re: How to close folio account?
« Reply #6 on: October 16, 2013, 12:52:18 AM »
Activating Foliofn trading account requires providing SSN.

Folio needs "a" SSN for tax reporting, not as a password.  I don't know that they compare it to what LC has on file.  There could be some legal issues with that -- sending SSNs to other companies and such.

I'd just enter a bogus one if I was a crook, and would be stunned if it did not work.  Same as one might do when they won $600 at the casino.  Or when selling a bunch of high value goods on ebay.  (Someone less virtuous than myself, I mean.)

Would anyone be willing to try it out for the team?

cnmor54

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Re: How to close folio account?
« Reply #7 on: October 16, 2013, 12:42:59 PM »
When i signed up for folio they insisted I fill in employer name. They didn't say anything about past, present or future employer or even that it be my employer. Thankfully, the address fields for said employer was optional.

nonentity

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Re: How to close folio account?
« Reply #8 on: November 04, 2013, 09:13:42 PM »
UPDATE: According to my lending club investor agent, lending club does not have the technical ability to close a folio account without closing the lending club account at the same time. He said no one has asked for this request before and they have not had anyone claim of having had unauthorized sell transactions on their folio accounts.

They assured me that in the case of a person breaking into my secure account and making unauthorized transactions by selling my notes on the foliofn platform at a severe discount, they would review each transaction and reimburse me and make me whole for each fraudulent transaction.

So as of now, it is impossible to close a folio account once your open it. The agent said it is possible to prevent a folio account from being opened by letting them know ahead of time. Lending club will contact folio and tell them to prevent the folio account from being opened. 

core

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Re: How to close folio account?
« Reply #9 on: November 05, 2013, 12:17:45 AM »
Thanks for the update.  Interesting information about them not being able to close the Folio account.

As for the rest of what he said, it is not all that surprising and doesn't exactly give me a warm fuzzy feeling.  I mean really, what else was he going to say?  "Sorry, you'd be out of luck."?  Obviously not.  He essentially just said they'd look into it.

"Bob said" isn't going to hold water if something major goes down.  You may hear "Bob doesn't work here anymore, we had to let him go for making promises to customers".  Or more often, "Sorry, Bob was mistaken".  If you've read the Folio and IRAs thread, you know that account reps occasionally say things that simply are not true.  As for him saying that it hasn't happened before, likewise, that just means he hasn't personally seen it.  Meaningless to me.

Notice they said they would review each transaction.  In other words they will reimburse you for transactions that they deem fraudulent, not you.  If the trades in question came from a Pakistan IP address, you probably have a good case.  But if the trades came from your own IP (ex-wife installed a proxy on your machine or just sat down at your computer, etc) then you are not going to have much of a leg to stand on.  If you've ever logged in from somewhere besides your house it's just going to look that much worse for you.

Consider this:  LC has no idea whether your ex-wife did it to destroy your account and steal, or maybe you two are in collusion and you two drained the money through a different account to defraud LC.  Once your own account is reimbursed, your little clan just doubled its money... assuming your ex-wife was smart enough to wire it out before you made the claim to LC.  It wouldn't be worth it for small amounts, but for $2mil?  You betcha.  Who decides what is fraudulent?  They do.  Based on what information?  Very little.  They are wide open to losing a LOT of money if they just reimburse everyone who makes a similar claim and I guarantee they are not going to be the ones holding the bag.

I've already addressed the "Bob said" issue.  If it's not in writing it didn't happen.  (Sometimes with LC even when it is in writing it didn't happen, again see IRA Folio issue.)  But let's take a look what is in writing.

From Lending Club Terms of Use:

In consideration of your use of the Site, you agree to (a) provide accurate, current and complete information about you as may be prompted by any registration forms on the Site ("Registration Data"); (b) maintain the security of your password and identification; (c) maintain and promptly update the Registration Data, and any other information you provide to the Company, to keep it accurate, current and complete; and (d) be fully responsible for all use of your account and for any actions that take place using your account.

In other words, in plain English and in writing, they are saying that you are responsible for protecting your password and that you are fully responsible for all actions that take place in your account.  But Bob says don't worry about that fine print.  I feel a helluva lot better.

I almost forgot...

According to my lending club investor agent

I see they have AGENTS now.  See guys, I knew it!
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Joleran

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Re: How to close folio account?
« Reply #10 on: November 05, 2013, 10:00:43 AM »
The first step would be to file a police report, then if LC doesn't make you whole, it's lawsuit and subpoena time for LC records about the note sales.  I think that LC is probably not going to invest serious time and money unraveling the truth; they will direct you to seek civil remedies if the issue is not straightforward.

If someone's just out to hurt you, it's going to be tough to reverse hundreds of transactions made fraudulently, especially since by the time LC acts some percentage of those notes will have already paid out or may have been re-sold.  Any recovery options LC provides will likely not make you entirely whole.

An actual thief would not just sell your Folio notes once for pennies, but would launder them through a chain of compromised accounts to throw a wrench into the works before unloading the notes at a "sure thing" discount and dumping the money out of LC.  In this case you are likely to be truly screwed unless you can get the Feds to look into it.