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Topics - Debt Free

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Investors - LC / LC now dropping E grade loans
« on: May 07, 2019, 11:51:33 PM »
Posted on LC's front page today...

Investment Update posted 5/7/2019
As of May 7, 2019, LendingClub stopped offering new grade E Notes except those corresponding to certain previously qualified or approved loans.

Effective July 1, 2019, no grade E Notes or loans will be available on the platform.

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So having invested in LC (both notes and IPO) for several years, I have found my account now being held "hostage" due to "anti-money laundering law" according to LC.

As a sole proprietor, I have kept cash in one LC account for my business and I draw the interest out at EOY as my "Christmas Bonus".  This last Christmas  was about my fourth year of doing so with this account.  Also, I had changed the linked bank account to send the money to a different business account than what I've normally used for the withdrawal.  I then changed it back to the original account in February so that I could deposit some extra cash back in.

During this time, the bank for my business accounts (20 year relationship) I've decided to move away from due to some of their new policy changes (Third variation of the bank.  Original bank victim in the financial crisis sold to bank #2 who merged recently with bank #3).  I've established relationships with another bank (5 year personal relationship, internet bank, now getting most of my business accounts) and a credit union (20 year personal relationship, brick-and-mortar, getting the remainder).

I went to change the linked bank account in LC and see the following when I clicked on the link...

Quote
To prevent money laundering activities and to protect the identity of our investors, Lending Club limits how often investors can change their linked bank account. You are not permitted to change your linked bank account at this time. For assistance, please contact Investor Services at investing@lendingclub.com.

I have transferred 99% of the money out of the original bank (which I am linked to) to my new banks.  After a transfer from LC to that bank clears in another day or two, I will be closing it down completely.

So I contacted investor relations at LC today about it.  Phillip stated that due to the AML laws, the account cannot be changed for at least another three to four months due to the fact that I had made an account change in February.  As we all know there are ALWAYS manual override capability (supervisory level) to situations like this.  Phillip understood my situation and predicament and agreed that LC's platform is "primitive" and that they "are working on improvements such as this issue".  But come on...  We talked about how with every other financial institution we've dealt with (banks and brokerages alike) do not lock the accounts like this making it virtually impossible to move money in or out for several months.  If anything, if it were a possible ID theft situation, simply answering the 20 pages of security questions allows the rep to unlock the account within a couple minutes.  He mentioned of course the ability to wire funds ($30 fee no thanks) or by check ($15 fee plus 10 business days again no thanks).

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Investors - LC / $100 IRA fee / winding down / charge offs
« on: March 03, 2017, 05:14:21 PM »
So I spoke to LC about winding down of both IRA and taxable accounts...

Q:  When winding down an IRA account and it drops below $10,000, will we start getting charged the $100 annual fee?
A:  No and yes.  If money is being withdrawn as RMD's after retirement, then LC recognizes the issue and continues paying the $100 fee.  If winding the account down prior to retirement (as in to liquidate and move), no it will become the responsibility of the owner.

Q:  When an account is closed, what happens to recoveries from the notes that were charged off?
A:  Owners sign a document releasing interest in any money recovered upon account closure.

So I'd imagine, with at least a taxable account, leaving it open with a zero balance for a year or so.  I don't think they'd go for that with an IRA.

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Investors - LC / Service fees in first year
« on: November 07, 2016, 06:28:07 PM »
So for some time now, LC changed their policy of no service fees during the first year, and that is what I've observed.  Finally got my SEP IRA opened with them, money moved and invested, and starting to receive payments.  Each payment received was normal (no Service Fee), but then this one...

Due Date  Settlement Date  Payment  Principal Portion  Interest Portion  Principal Balance  Late Fees  Investor Fees  Pmt Status
                                            Amount   of Payment           of Payment
12/1/16    --                       $0.89       --                        --                        --                          --             --                    Scheduled
11/1/16   11/4/16              $0.74       $0.54                 $0.20                  $24.46                 $0.00       ($0.01)          Completed
Recurring payment date changed to 1st per approved borrower request Info


See below for the actual issue I'm questioning.

Another bug???

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Investors - LC / Lending Club / National Bank of Canada deal
« on: November 07, 2016, 04:11:22 PM »
"Shares of LendingClub Corp. (NYSE:LC) are up by about 17% as of 10:36 a.m. EDT on Monday. The company announced a sequential increase in originations and a new deal with National Bank of Canada (TSX:NA), in which the Canadian bank will purchase up to $1.3 billion of loans from its platform over the next 12 months through its U.S. consumer lending subsidiary."

Thoughts?  Diminishing retail investor support?


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Investors - LC / Charged off account SOLD with no reimbursement to me
« on: September 08, 2016, 04:05:39 AM »
Auditing my portfolio and found this "lemon".  $25 note with ZERO payments charged off.  Interesting thing is the entry on 9/1/16.  If the account was SOLD to a third party debt BUYER, why did I not receive any portion???


9/1/16 (Thursday)   Account was sold to a third party debt buyer
6/30/16 (Thursday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely
.
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Typical 10,000 "phones calls, no message left"
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.

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Investors - LC / LC's restriction on multiple accounts
« on: August 26, 2016, 09:46:37 PM »
Investing via LC for almost 4 years now.  I have four accounts under my tax id (excess business cash, joint with my wife, and two more, one for each of my kids' college fund).  All are taxable accounts (not going into my reasoning).  Opened another under my wife's tax id for an IRA.  At that time, they "allowed" 4 accounts per tax id.  I questioned it as they offer a vast array of account types for multiple reasons.  "That is all that the platform will allow, but hope to update that in the future." was the response I got.

On another front, I went in on the IPO last year, took a nice profit from it, and still hold a position.

Fast forward to now.  After periodic phone calls to them over the last four years, I finally got an upper tier rep to permit a manually opened account for a SEP IRA for myself on a "one time basis".  However, I would like to still open two more IRA's under my tax id for an Inherited IRA ($22,000) and a Roth IRA ($20,000).

They now state that each tax id is limited to THREE accounts.  This makes no sense to me considering they offer so many account types.  I've read many articles that state that they want more investor's money to support the borrowers.

Has anybody else ran into this issue and found a work-around other than pestering the heck out of them?  While I'm not an institutional investor, they claim that they will always support the "little guys" that the platform was designed for.  I won't get into the lack of note classes as of lately as that is off my main topic of wanting to open more accounts.

The only thing I can think of is to open two more accounts under my wife's tax id and SLOWLY move the college fund assets over to those, thus freeing up two accounts for me.  However, being that I have my business account, our joint account and soon to be my SEP IRA, I'm still in the position of being BARRED from opening any more accounts.

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