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Messages - Debt Free

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Investors - LC / What's your next move?
« on: November 21, 2020, 04:49:16 PM »
Crickets are overtaking the forum.  For those of you still checking in periodically, what's next for you?

Investors - LC / Delayed charge off
« on: October 11, 2020, 05:25:29 PM »
Here's an interesting note that just popped up on my September statement.  Had only one charge off.  Interestingly according to the note, it was charged off 5/28/20 and yet it finally appears on my September statement?  What gives LC?

And I'm sure many of you had the issue that I've experienced that notes were listed as current, NOT on hardship plans, AND the last payment was 2-3 months ago.  When I called LC about it, they were aware of the "technical issue" and had a team working on it with no anticipated resolution date.

Investors - LC / Re: RIP Lendingclub Notes
« on: October 11, 2020, 05:18:06 PM »
Here's another interesting question.  After the platform closes down for new investments and five years goes by, presuming 5% of these notes charge off, how long will your accounts remain active to collect any charge off recoveries?  Among my accounts, I have two that have drawn down to zero with no active notes.  I still receive recoveries each month of a couple dollars.

Will LC maintain our accounts for another 15 years or buy out the charged off debt from us?

Will it be simply an "introductory offer" valid only for your initial opening deposit?  Or expires after 12 months.
Will there be a minimum deposit maintained amount of say $10,000 in order to achieve it?  Otherwise it reverts to 0.01%.
Will it be  the scenario of only up to the first $3,000 and then any amount above that is the standard rate of 0.01%?

Investors - LC / Re: Any way to consolidate multiple LC taxable accounts?
« on: September 07, 2020, 01:59:05 AM »
An IRA IS an individual account.  All of her active notes, I was able to sell leaving only charged off notes.  All of the cash was transferred to another brokerage.  The only thing left in the account were all her charge offs which do occasionally pay recoveries.  The options were either to surrender the charge offs to LC and be done with the account, or to transfer / convert them over to my individual taxable account.  Fairly easy.  I just had to add her to the individual account, thus making it a joint account, and then transfer the charge offs from her IRA.  When they do that, they create a new "portfolio" folder and dump them into that.  Subsequently, the IRA is then closed.  Then whatever recoveries come in, they credit to the taxable account.

*  Disclosure:  I am not a tax attorney, consult a professional tax advisor.

General P2P Lending Discussion / Re: WSJ: flying blind into a credit storm
« on: September 01, 2020, 11:15:41 AM »
Yes, they cut my business credit line in half as well.  Only affect is the change in debt-to-limit ratio.  Funny though that at my brick and mortar bank, BECU tripled my limit which negated what Capital One did.

Foliofn - LC / Re: Folio ending August 28th.
« on: August 27, 2020, 12:58:43 AM »
I think I was fortunate.  In the three short weeks we were given, I managed to liquidate everything besides hardship loans (~30), <120 days remaining (~30), and headed down the path towards default/charge off (~15).  Roughly $3,500 sold and $350 remaining.  Now time to transfer and combine the accounts into one which I currently hold $6,600 in (taxable).  I'll still work it there for awhile and see how things play out over the next year or so to see if LC makes any kind of comeback.  Otherwise, I'll just let it bleed out a slow painful death.

Current holdings of the account I am keeping open (before transfer of other accounts assets into it):

My Notes at-a-Glance  2582
Not Yet Issued                  0
Issued & Current          799
In Grace Period              11
Fully Paid                  1,455
Late 16 - 30 Days            6
Late 31 - 120 Days         15
Default                            1
Charged Off                  295
Cancelled & Cancelling      0

Any idea the policy on dormant taxable accounts with zero active notes and holding only charged off notes?

As long as account ownership is the same, yes you can.  I liquidated my SEP IRA last year and the only thing left in it were charged off loans that *occasionally*  post recoveries.  Being that I owned a taxable account as well, all I had to do was fill out a form "relinquishing" the charged off notes to the taxable account.  The charged off notes were placed into a separate portfolio named by LC.

I'm in the process of doing the same with my wife's Traditional IRA.  I only had to add her name to my taxable account to accomplish it (changing it from an individual account to a joint).  Unless somehow it involved Folio, I don't see any issues with it.  When I did the first conversion, there were no Folio fees involved.

Foliofn - LC / Re: Buying Notes at premium in current environment
« on: June 28, 2020, 08:24:07 PM »
Could you provide a few example notes?

Investors - LC / Re: Review of my lending club account
« on: May 11, 2020, 02:46:56 AM »
I have experienced the exact same thing.  "Supposedly marketable" since you can "list" it, but they won't list them as if they are in default.  If you can list a note 30-120 late, but not hardship, something is W-R-O-N-G.  No way around it.  Dancing around another potential class action by investors?

Investors - LC / Re: Crisis management - stop charge-offs ?
« on: April 04, 2020, 06:16:16 AM »
I ran into this same problem several months ago.  I don't recall anything about a "deferred status."  Called LC and they were aware of the issue.  After 2-3 months the problem cleared up.  Never found out what the underlying problem was.

Investors - LC / Re: Winding down on Lending Club
« on: February 28, 2020, 06:00:36 PM »
How did you do the trustee to trustee transfer for $25?  Did you fill out a form with the trustee you transferred to and authorize them to pull the money from STRATA?

Yes.  I moved it over to my SEP IRA at Interactive Brokers.  On IBKR's site, I initiated a "Direct Trustee-to-Trustee" transfer, downloaded and filled out the form, and either emailed or faxed (I don't recall) the form to Strata.  IBKR's form required a Medallion Signature Guarantee which I got from my bank with no problem.  I don't know about E-Trade.  One thing to note is that LC / Strata does not utilize ACATS, so they had to send a check or wire to IBKR.

Or did you fill out a form with STRATA and ask them to send the money to your new trustee?  I'm moving mine to E*Trade.  I did find their form to pull money from another trustee, but was wondering if it would be faster and more trouble free to ask STRATA to send it to E*Trade.

I directed Strata utilizing IBKR's form.  I am not a fan of Strata's form, mainly due to the fact that they don't acknowledge or allow you to specify "Known Exception" for doing a "60-day Rollover".  They actually say that it will be classified as an early distribution and that I'd have to work it out with my taxes later which is total bunk.  This doesn't apply to a "Direct Transfer" however.  When I did my "Rollover", LC sent me their "revised" Strata form that DOES allow you to specify "Known Exception".

Also do you "withdraw" from Lending Club first so that they move the money from the Lending Club account and into STRATA?

Yes.  You must initiate a withdrawal on LC's site first and wait for the funds to arrive in your account at Strata.

Did STRATA take the $25 fee from your account, or are you able to pay for it with your own funds to keep the most possible in the IRA?

Yes and Yes.  Here's where Strata stood up.  When I did my large Direct Transfer, they took the $25 out of the funds being transferred.  Not a big deal I thought considering I was going to be able to better invest my funds elsewhere.  I later talked to them when I had finished liquidating the last few remaining notes.  I asked if the $50 fee could be paid with outside funds (AKA credit card).  They said yes, I could.  I then asked if that were the case, could they reallocate the earlier fee of $25 and charge me $75 which they agreed to do, and did.  That way 100% of the funds did in fact get transferred, although $75 represented only 0.5% of the cash involved.  So I used LC's form for the Rollover, specified in a cover sheet and on the transfer form in the margin that any and all fees were to be paid with outside funds.  Well, they ended up taking $50 out of my funds like before.  I called Strata and long story short, they took my credit card over the phone, charged $75 to it, and sent $75 to IBKR which finalized my exit from LC for this IRA.

All said and done, from submission of the form to Strata to receiving the funds at Interactive Brokers, it took approximately 2-3 weeks if I remember correctly.

I now need to transfer my wife's which had fully liquidated a couple months ago, but wanted to get through my SEP IRA first to see how it went.  Especially now with the market in this correction.

Investors - LC / Re: Winding down on Lending Club
« on: February 27, 2020, 01:32:35 AM »
When you get down to $10,000 value remaining and approaching your renewal date, contact LC and request that they continue to cover the annual $100 fee.  Explain that you are winding the account down.  They're VERY familiar with people doing this (evacuation of the retail side).  They'll gladly cover it.  Took me two waivers on my one SEP IRA to accomplish it.

B.  I just finished winding down my $16,000 SEP IRA a month ago.  Did a direct trustee-to-trustee transfer of $15,000 cash awhile back at a fee of $25.  Ran into issues liquidating my last 30 some odd notes due to platform issues.  Finally sold those off and did a rollover of the remaining $1,000 of cash at a fee of $50.  (Total costs of $75 vs the $250 indicated on their site.)

Leaving only paid off and charged off notes.  Working now on getting those transferred over to one of my taxable accounts.  Big issue with that now is they no longer support linked accounts under one login/email.  So now they're working on separating my four taxable accounts by breaking the link.

Just finished winding my wife's Traditional IRA with one annual fee waiver as well.

I am wrapping up the process myself.  I imagine most people who wind down their IRA's with LC / Strata sell off their active notes until all that is left are charged off notes.  In my case, I sold off about $15,000 ($25 fee) leaving about $400 left.  I direct transferred trustee-to-trustee the cash balance while I worked on selling off the remaining active notes which I finished doing 2-3 weeks ago.  I've submitted for the remaining cash to be a rollover check sent to me which I just received.  LC is supposed to now transfer the remaining charged off notes (69 of 384 notes) over to one of my taxable accounts where any recoveries can still be received.  I am still waiting for LC to complete this part.  I have done the same with my wife's IRA and am working on moving the funds now.

Then my remaining taxable accounts will be wound down either by sale or attrition of the active notes until I have them all combined into on last taxable account.  I don't know yet what I'll do with that final account yet.  Probably hold onto it and keep dabbling with it to see if there is any future major improvements by LC.

Off Topic / Re: Cash Parking
« on: February 05, 2020, 04:23:40 PM »
If you go to the link and then scroll down, you'll see the offer.

Honestly, I may have been mistaken before.  When you click on the link, the page displays what appears to be a message indicating a page error.  However, when you scroll down, the Kasasa offer is displayed.

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