Author Topic: Charged Off Prematurely?  (Read 5244 times)

yojoakak

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Charged Off Prematurely?
« on: November 24, 2013, 12:21:58 PM »
This borrower is/was making regular payments, according to a payment plan.

Then out of the blue LendingClub changes the status to "ChargedOff".

What gives?

https://www.lendingclub.com/account/loanPerf.action?loan_id=434797&order_id=1457664&note_id=598619

« Last Edit: November 24, 2013, 12:31:02 PM by yojoakak »

New Jersey Guy

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Re: Charged Off Prematurely?
« Reply #1 on: November 24, 2013, 01:12:59 PM »
Issued Date    8/28/09

This loan should have been paid off in 2012.
Isn't there something in the LC rules concerning payments to investors on loans past their maturity?

This entire loan is a mess. He hasn't made a regular payment in 3 years.  Technically, he just kept getting further and further behind.

I agree with you.  This shouldn't have been charged off as long as he's been making payments as agreed.  It maybe one of two things:

A.)  A Lending Club "Automated" mistake.
B.)  He's just waaaay to far outside his agreement and LC felt "Enough is Enough".
Return over deposits:   66.82%
IRR:   86.54%
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yojoakak

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Re: Charged Off Prematurely?
« Reply #2 on: November 24, 2013, 02:04:18 PM »
Isn't there something in the LC rules concerning payments to investors on loans past their maturity?
The limit was 5 years, supposedly due to some kind of "significant OID" / tax treatment issue. http://www.lendacademy.com/forum/index.php?topic=530.msg1768#msg1768


Randawl

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Re: Charged Off Prematurely?
« Reply #3 on: November 24, 2013, 02:43:18 PM »
Even though I can see how they can technically justify it, that loan should not have been charged off.  What happened to the 11/5 payment?  It shows that a payment cleared and then it was "charged off" 17 days later.  Can you check your account activity?

GS

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Re: Charged Off Prematurely?
« Reply #4 on: November 24, 2013, 04:39:46 PM »
Interesting that the payments to date add up to $25.05 for a $25 note.  I wonder if LC made a deal to cancel the loan if he paid back the principal.

DanB

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Re: Charged Off Prematurely?
« Reply #5 on: November 24, 2013, 08:02:23 PM »
Interesting that the payments to date add up to $25.05 for a $25 note.  I wonder if LC made a deal to cancel the loan if he paid back the principal.

Where is Core when you need him. This type of stuff is what he lives for.

Bohb Daishi

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Re: Charged Off Prematurely?
« Reply #6 on: November 25, 2013, 04:22:52 AM »
I'm 95% positive it has to do with when that 11/5 payment actually cleared. Do you know if LC back-dated it? It might have been in the "grace period" for a day or two, causing the charge-off system to no longer recognize it's payment plan.

On a side note, is that screen shot representative of LCAC?
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core

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Re: Charged Off Prematurely?
« Reply #7 on: November 25, 2013, 05:15:20 AM »
I'm 95% positive it has to do with when that 11/5 payment actually cleared. Do you know if LC back-dated it? It might have been in the "grace period" for a day or two, causing the charge-off system to no longer recognize it's payment plan.

The 11/05 payment was not backdated; it actually showed as a partial payment back on the 5th.  It was never in grace, it's been 31+days late for ages, at least until the 22nd of this month or later.  Strange that they changed that particular line to charged off weeks after the payment successfully settled... Why not list it on a separate date.  Hope that pmt got credited.

Interesting that the payments to date add up to $25.05 for a $25 note.  I wonder if LC made a deal to cancel the loan if he paid back the principal.

Where is Core when you need him. This type of stuff is what he lives for.

LC skimming money from investors by encouraging defaults, secret deals with borrowers, and entering early chargeoffs?  *yawn*  Not even newsworthy anymore.  If they suddenly start tracking stuff accurately and honestly, now that might look awfully suspicious to me.

Bohb Daishi

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Re: Charged Off Prematurely?
« Reply #8 on: November 25, 2013, 05:55:53 AM »
I'm 95% positive it has to do with when that 11/5 payment actually cleared. Do you know if LC back-dated it? It might have been in the "grace period" for a day or two, causing the charge-off system to no longer recognize it's payment plan.

The 11/05 payment was not backdated; it actually showed as a partial payment back on the 5th.  It was never in grace, it's been 31+days late for ages, at least until the 22nd of this month or later.  Strange that they changed that particular line to charged off weeks after the payment successfully settled... Why not list it on a separate date.  Hope that pmt got credited.

I meant the payment would have been in the grace-period, not the account. The payment settled 8 days after the due date, so it could have been triggered as "late".
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yojoakak

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Re: Charged Off Prematurely?
« Reply #9 on: November 25, 2013, 09:33:23 AM »
Can you check your account activity?

Account Activity confirms the payment was on the 5th:




On a side note, is that screen shot representative of LCAC?

Yes (although some features may still be experimental and not yet turned on in the released version.) Do you like it?
« Last Edit: November 25, 2013, 09:37:51 AM by yojoakak »

lender_john

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Re: Charged Off Prematurely?
« Reply #10 on: November 25, 2013, 10:14:40 AM »

Annoying and unfair.. but I've definitely seen it before on a couple notes.

Bohb Daishi

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Re: Charged Off Prematurely?
« Reply #11 on: November 26, 2013, 02:56:19 AM »
Yes (although some features may still be experimental and not yet turned on in the released version.) Do you like it?

I do like it! I got it working on FireFox. Now I just need to get it working on Chrome...
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