Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: Fred93 on March 10, 2014, 03:45:46 AM

Title: when first payment is due
Post by: Fred93 on March 10, 2014, 03:45:46 AM
Seems like this should be obvious, but apparently it is not.

I would expect that the first payment should be due one month after the loan issues.  For my old notes, this is correct.  For some of my recent notes, it is also correct. 

But... for some recent notes, there seems to be about an EXTRA TWO WEEKS in there, ie something like 6 weeks from issue to first payment.  I've attached a capture showing a note that issued on 3/5/14 with first payment due 4/20/14.

Has this been going on for a long time?  Have I just been oblivious?  Is this for real, or a bug, or what?
Title: Re: when first payment is due
Post by: Bohb Daishi on March 10, 2014, 04:04:05 AM
It is possible that Lending Club now allows borrowers to choose their payment due date when the loan issues.
Title: Re: when first payment is due
Post by: cnmor54 on March 10, 2014, 11:19:17 AM
I have had quite a few of those lately and what is really irritating is the fact that I don't collect any interest for those 10 days or 2 weeks.
Title: Re: when first payment is due
Post by: core on March 10, 2014, 11:25:28 AM
Where does it say in the investor agreement that LENDING CLUB doesn't have to pay the INVESTOR interest if the borrower wants a different due date?  Lending Club, you can do whatever you want with payment dates, but you have an interest obligation to me and *I* didn't waive any interest.
Title: Re: when first payment is due
Post by: cnmor54 on March 10, 2014, 12:57:23 PM
Here's a perfect example
https://www.lendingclub.com/account/loanPerf.action?loan_id=12487507&order_id=18273399&note_id=41704960

issued date: 3/4/14
1st pymt: 4/16/14
accrued interest : zero, zip, nada
Title: Re: when first payment is due
Post by: BruiserB on March 10, 2014, 09:22:29 PM
I've noticed a few of these as well.  I agree that all interest should be paid.  Also I would rather see LC allow this only after the borrower has made a few payments on time.  This just seems like it gives the borrower more time to disappear if they intend to take the money and run.  If LC doesn't want to force the borrower to change the amount of their first payment, they should just add the accrued interest to the principal and adjust for it at the end of the loan....have the borrower make an additional partial payment at the end.
Title: Re: when first payment is due
Post by: core on March 11, 2014, 02:23:01 AM
I've noticed a few of these as well.  I agree that all interest should be paid.

Why is this even a topic of discussion?  LC contractually owes us interest.  There is no opinion, no discussion; end of story.  This is not open to discussion.  Except maybe by lawyers.  I don't see why we should have to argue to get what was already agreed to.
Title: Re: when first payment is due
Post by: Fred93 on March 11, 2014, 01:53:42 PM
I  got an answer from Lendingclub this morning
Quote
Thanks for your question.  Generally, the borrower's first payment is due 30 days after issuance.  It looks like the borrower in your example requested a different payment date, which can be done although it is not the norm. Since interest accrues monthly on the borrower's loan, the interest for this payment does not change.  We are working on a way to calculate interest daily but currently the system is set up to calculate monthly interest.
Title: Re: when first payment is due
Post by: Fred on March 11, 2014, 02:34:33 PM
I  got an answer from Lendingclub this morning
Quote
Thanks for your question.  Generally, the borrower's first payment is due 30 days after issuance.  It looks like the borrower in your example requested a different payment date, which can be done although it is not the norm. Since interest accrues monthly on the borrower's loan, the interest for this payment does not change.  We are working on a way to calculate interest daily but currently the system is set up to calculate monthly interest.

Interests accrue monthly?  Who does that nowadays?

It is much more important to run accrual calculation daily than to keep amount precision to the 10-th digit.
Title: Re: when first payment is due
Post by: Rob L on March 11, 2014, 07:18:01 PM
+1.
I know we're talking about nickels and dimes literally, but that answer from LC is, well, .... ????
 I dunow, pick a word; incredible, bizarre, can't  think of anything else.
Maybe before the PC was introduced (1981 wasn't it?) interest was accrued monthly.
I thought of another word; unbelievable.

They really said that!
Title: Re: when first payment is due
Post by: rawraw on March 11, 2014, 08:28:21 PM
One of you Fred's needs an avatar. 
Title: Re: when first payment is due
Post by: core on March 12, 2014, 08:24:44 AM
How can they say with a straight face that interest accrues monthly when the accrued interest total changes daily?
Title: Re: when first payment is due
Post by: Keltset on March 12, 2014, 10:32:21 AM
How can they say with a straight face that interest accrues monthly when the accrued interest total changes daily?

Ha! I was thinking the same thing. *palmface*
Title: Re: when first payment is due
Post by: Fred on March 12, 2014, 10:54:17 AM
If you go to the "My Account" on LC Folio page: https://www.lendingclub.com/foliofn/tradingAccount.action, and hover over the question mark below the "Accrued Interest" heading, you'll find:

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fs29.postimg.org%2Fls1u8ptdz%2FCapture.png&hash=f48eea35d6dfcd653f4551a3b280fb9f)

"Interest accrues daily."
Title: Re: when first payment is due
Post by: core on March 12, 2014, 11:23:15 AM
I think this is just another case of a Lending Club representative making things up in order to answer a question.  Nothing deeper than that.  This happens all the time; I have lost count.  Any statement made by a lone account rep should be dismissed as a fairy tale.
Title: Re: when first payment is due
Post by: Fred93 on March 12, 2014, 10:25:10 PM
Got a call from the LC rep who clarified.  Said my questions had been escalated.  The change to allow them to do daily accrual is scheduled for 2nd quarter.  I asked whether that would mean that I would then be compensated for the up to 2 week delay.  Answer was no, that was the eventual goal, but would result from a later project.

I'm just the messenger, so please only throw small rocks.
Title: Re: when first payment is due
Post by: rawraw on March 13, 2014, 07:12:33 AM
Got a call from the LC rep who clarified.  Said my questions had been escalated.  The change to allow them to do daily accrual is scheduled for 2nd quarter.  I asked whether that would mean that I would then be compensated for the up to 2 week delay.  Answer was no, that was the eventual goal, but would result from a later project.

I'm just the messenger, so please only throw small rocks.
I'm so happy to see this.  All too often people on the forum complain but don't contact LC.  Glad to see their responses
Title: Re: when first payment is due
Post by: Keltset on March 13, 2014, 10:25:56 AM
I would be curious to see what was said if you called them back and forwarded then a copy of that image a page ago and request reimbursement for the time loss value as they have misrepresented themselves on the site. They have done so by A) screwing up the notation on the folio page and B) Misrepresenting interest accrual on the note pages themselves on the primary site. You can't say that interest is accrued monthly but apply it daily to the account balance. That just doesn't make sense. By definition accrued interest is the interest earned but not yet paid and the accrual rate is the frequency that accrued interest is done. My opinion would be that the site misleads people to believe that interest is actually accrued daily by misrepresenting every note on the listing... But that's just MHO.
Title: Re: when first payment is due
Post by: yojoakak on March 13, 2014, 10:47:50 AM
I would be curious to see what was said if you called them back and forwarded then a copy of that image a page ago and request reimbursement for the time loss value as they have misrepresented themselves on the site. They have done so by A) screwing up the notation on the folio page and B) Misrepresenting interest accrual on the note pages themselves on the primary site. You can't say that interest is accrued monthly but apply it daily to the account balance. That just doesn't make sense. By definition accrued interest is the interest earned but not yet paid and the accrual rate is the frequency that accrued interest is done. My opinion would be that the site misleads people to believe that interest is actually accrued daily by misrepresenting every note on the listing... But that's just MHO.

You're forgetting that we don't own "loans", we own "member payment dependent notes".

It's fiction.  12 decimal places of fiction.

It's like calling up Steven Spielberg to complain about the plot holes in Cowboys & Aliens.

See also: http://www.lendacademy.com/forum/index.php?topic=595.0
Title: Re: when first payment is due
Post by: Fred93 on March 13, 2014, 01:11:39 PM
I would be curious to see what was said if you called them back and forwarded then a copy of that image a page ago and request reimbursement for the time loss value as they have misrepresented themselves on the site.

You have a phone, eh?
Title: Re: when first payment is due
Post by: Keltset on March 13, 2014, 01:43:21 PM
I would be curious to see what was said if you called them back and forwarded then a copy of that image a page ago and request reimbursement for the time loss value as they have misrepresented themselves on the site.

You have a phone, eh?

Whats a phone? I don't use them for talking... But I suppose I could be bothered to write an email to resolve my own curiosity... Ha!
Title: Re: when first payment is due
Post by: rawraw on March 13, 2014, 02:37:38 PM
I would be curious to see what was said if you called them back and forwarded then a copy of that image a page ago and request reimbursement for the time loss value as they have misrepresented themselves on the site.

You have a phone, eh?
See what I mean ha ha
Title: Re: when first payment is due
Post by: core on March 13, 2014, 02:45:08 PM
You have a phone, eh?
See what I mean ha ha

All I see is that we have yet another comedian in the ranks, possibly from Canada eh?
Title: Re: when first payment is due
Post by: rawraw on March 13, 2014, 08:40:56 PM
Core, I'm sorry you don't have a personal account rep.  I know this hurts you -- I'll share mine.  Her name is Stephanie