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Messages - Debt Free

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31
I'm not a big fan of paying exorbitant fees to access my money when...

a)  This shouldn't even be an issue.  If I changed accounts "19x" in a  month, different story.  Two changes 4 months apart shouldn't trigger this.

b)  ACH is designed to be much more efficient and quicker than this, just not on this platform.

c)  How would you feel if it was your $100,000 and you had changed banking institutions and found yourself unable to pull money out???

The word "hostage" seems incompatible with the fact that they offered to mail you a check.

I'm actually wanting to move money into the account after the first of the month.  ACH is quicker and more secure than sending a paper check that is held for funds to clear.  But it doesn't sit well in my stomach that a simple override cannot be accomplished over the phone with security verification.

I put this out more to find out if anyone else had a similar experience and if so, how was it resolved short of waiting for the 6 months to pass by?

32
FYI, it was 2 changes made over 4 months.  From account A to account B (first) and back to (A) 4 months later.  Hardly a red flag to trigger a lock on changing a linked bank account.  Especially when many institutions allow multiple linked accounts and more frequent changes.

And honestly, this wouldn't be an issue if LC would allow you to PUSH ACH transfers which is more secure for the account holders.  But no, they only allow a PULL forcing you to store your bank account information on other servers.

33
Lol.  Sensational headline, maybe a tad with the word "hostage" in it.  But the fact remains that they won't  update my bank information as it stands right now due to AML laws.

So what's inaccurate or misleading about it?

Thinking about your comment, did you interpret it was referring to THEIR company funds?  If so, my bad.  Not what I meant to infer.

I changed the topic to try and be less "dramatic" for those more gullible.

34
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).

35
Sorry if I was too "general".  Across 6 accounts utilizing similar filters with 2926 notes (net of Paid and Charge Offs), I had 23 charge offs in Jan and 12 charge offs in Feb.

Yes some loans are across multiple accounts and some charge offs were "duplicated".   :o

36
7 charge offs in Jan, only 1 in Feb on one of my 6 accounts.  But pretty much the average across each of them.

37
Off Topic / Re: Cash Parking
« on: March 15, 2017, 02:38:14 PM »
Go Navy!!!
NFCU
Special EasyStartSM Certificate (Share/IRA/ESA)   $50 min $3,000 max   12 months   3.00%

38
Investors - P / Re: Closing down a Prosper IRA: issues, tips and traps
« on: March 13, 2017, 02:20:46 PM »
I don't know Prosper, but I wonder if you can capture the remainder with a 60-day rollover paid directly to you?

39
Investors - LC / Re: My Decaying Star .......
« on: March 09, 2017, 10:02:41 PM »
We all keep commenting on winding down for 3 / 5 years based on note terms.  However, as you're experiencing, I doubt they'll last that long overall.  Even with steady paying borrowers, I suspect that as their notes wind down that there will be the inclination to pay them off when it gets down to 3-6 months left.

40
Foliofn - LC / Re: Is this legal?
« on: March 04, 2017, 11:45:10 PM »
You're asking the wrong people.  Ask those who will be defending your position.  Here's a google list of them...

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=securities+defense+attorney&*

What you're asking has wash sale written all over it.

41
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.

42
How do you want the money sent?  Money order, Walmart gift cards, or cash?

43
General P2P Lending Discussion / Re: 12 Month Note - up to 30% - $8,000.00
« on: February 28, 2017, 09:01:21 PM »
I'll take you up on it if you'll do 150% for six months!

44
You know, it probably wouldn't hurt to discuss it with any of your potential heirs to get their thoughts.

Honestly, I began in LC in late 2013.  Seems like just yesterday.  As some have alluded to, just because you invested in 3 or 5 year notes does not mean they will remain to maturity.  If you shift to 3 year notes only now, before long your 5 year notes will be gone.  Then if reinvestment is stopped, with normal attrition between defaults and prepays, I'd say maybe 70% of the account may unwind in 2 years or less.  I am picking numbers out of the air though.  Others here may have more accurate numbers.

45
Sure the last dollar doesn't come out until 5 years are up, but most of the money comes out much sooner.

Which brings up another question I've pondered.  I have multiple accounts with LC including two IRA's.  Regardless if it's an IRA or taxable account, let's say you unwind the entire account cashing it out and then closing the account.  What happens if LC collects on charged off accounts?  You've zero'd your account out and it's closed.  Some of your charged off notes have been collected on.  What would LC do with your share of the collection?

... Whoops, I just realized I hijacked a Prosper thread.  Sorry. ...

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