Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: Rob L on December 09, 2017, 06:58:19 PM

Title: LC and Prosper Fees Comparison (and kudos to LC)
Post by: Rob L on December 09, 2017, 06:58:19 PM
When I submitted my most recent "Prosper Worst Month Yet" post I was frankly overwhelmed regarding the Prosper's fees.
In the spirit of full disclosure Bryce Mason pointed this disparity out to me in a private communication years ago.
For those who missed it this is my record to date:

Prosper Gross profits:    $6,841.47
Prosper fees:                $1,349.43
Prosper Net Profits:       $5,492.44

Prosper fees as a percent of gross profits: 19.7%!!

I must note here that my Prosper notes were very conservative A & B notes.
Fees are higher for low interest rate notes. You are being charged for getting your principal back and not much interest.

At the time of the Prosper post I said I'd have to compare it with LC if I were not too lazy. I was not (weekend time):

(https://i.imgur.com/eVLQNMB.png)

My hat is off to LC. Realizing how bad it was for a lender to have a loan paid back in the first year and be charged for the privilege of receiving their principal back they did the right thing and made a change. Fees for loans paid off in the first 12 months are charged at the nominal P+I for all payments. That kind of move should make me a LC fanboy!







Title: Re: LC and Prosper Fees Comparison (and kudos to LC)
Post by: jd on December 11, 2017, 09:41:27 AM
I'm not in Prosper so I never looked all that closely at the fees but that is crazy.  Thanks for shinning some light on good news.