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I thought I would share my experience with LC and Strata in recently liquidating two IRA accounts.
In early December, I started the process of selling notes on Foliofn. This took about three weeks for each account.
In late December, I mailed the Strata withdrawal/close account request form directly to Strata. Don't do this. You need a special Lending Club/Strata withdrawal form. My error smoked about a week of time. I emailed the correct form to LC and they forwarded to Strata.
About 10 days later, I received the withdrawal check in the mail. Total fees charged by Strata were $150 (fees would be higher but for a paper check via USPS).
In early January, I emailed LC the form to close account number 2. They forwarded this to Strata.
Strata has been sitting on this second request -- I emailed and phoned Strata (left VM) requesting expeditious processing. My annual account fee was due Jan 28 and I wanted to wrap this up before then. As of today, Strata has done nothing. My Strata funds were hit with an autopay charge of $100 annual fee on Jan 29. I called LC today and the account rep said he would reimburse the fee bc I had evident intent of closing the account.
Thank you, LC!
Moral of the story: get your papers to Strata very early. And follow up, follow up, follow up.
Personally I would not consider a note being paid during the grace period as being paid late.Late is late when buying on FOLIO. Dr. Everett and jz are the heavy FOLIO buyers here and I would guess they would say the same thing.
I would agree- if I could find a way to get IGP and have my automation sell on it I would jump all over it. Never Late is good and boring. IGP is a harbinger of bad things to come. All of my Late/CO notes showed some or multiple IGP before finally walking the plank. Much like I wish I had better options to sell on FICO drops on Lending Robot, I would dance a jig for IGP sales.
The conclusion is you shouldn't just lend to the riskier people and expect defaults never to occur.
I imagine we are a target because we bought a house in Jan 2016 and promptly took our 0% offers on two credit cards and two store financing options to get things like floors, windows, and two bathrooms remodeled (I was a busy beaver, still am). My budget has them all getting paid off before the 0% expires so I am paying in the neighborhood of ~3k a month towards these debts. I keep track of FICO and credit reports via Credit Karma and I see our high balances dropping like a stone.
What a great arbitrage opportunity!!
Whoa... wait... never mind!
Those Ds have to be getting refinanced either through LC or a competitor.
Just so happens that I received a pre-approved offer from Discover in the mail today.
In the letter they tout same day approval, loan terms of 3, 4, 5, 6 or 7 years, up to $35k and no origination or closing fees.
There's a "Compare the Benefits" table including LC, Prosper, Citibank Personal Loan and PNC bank. No Marcus.
Top line of the table; zero origination or closing fees for all but LC and Prosper (which they estimate to be about $675 for both).
Anyone with a loan at a Discover competitor like LC would likely pick up the phone and call Discover. It's free and easy. No downside.
Got one of those about six months ago and posted it here, before I started running a little experiment with my own FICO - for other reasons - which sits at well >800 with ~0% util (I've been doing PIF, even before they report balances, each month - though a couple hundred bucks here or there will show up on a card or two, last day or so of the month, and get reported)... I decided to look like a good, Christmas-shopping consumer this month (instead of a deadbeat/tightwad) and loaded up a 0% card with a ton of stuff which I'm going to let get reported, before PIF in January (maybe, depending on if any interesting rate arb opportunities arise, w/fed move).
I should be in the sweet spot for LC/P/GS/STI/DFS loan offers, both on the credit side and on the amount side - I expect to learn a lot from my January junkmail about who's doing what...
