Author Topic: Late Fee  (Read 3960 times)

pplinvestor

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Late Fee
« on: July 03, 2013, 06:12:31 PM »
Some of notes were late and I received late fee payment.  But I did not receive late fee for some other notes that were late for over 30 days.  On what circumstance investors will receive late fee payment?  Look this one note.  It was late so many times.  But only one time Late fee is charged.  Why?
https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=1275337&order_id=2710110&note_id=10554723&asking_price=16.73

rawraw

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Re: Late Fee
« Reply #1 on: July 03, 2013, 07:53:16 PM »
See all those "Borrower promised to pay" lines?  Someone recently found in LC's filings that if the borrower promises to pay, late fees are waived.

pplinvestor

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Re: Late Fee
« Reply #2 on: July 03, 2013, 09:13:38 PM »
Thanks, Rawraw.

Wonder whose genius idea.  So if one pays late and not call in advance, s/he will end up to pay late fee.  But s/he calls in first to say promise to pay, s/he can avoid the late fee.   Wonder whether all my creditors have the same system.  I shall be late and call later to promise to pay to avoid the fee.   Darn. it did not work with my County Property Tax Collector last time. 

rawraw

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Re: Late Fee
« Reply #3 on: July 03, 2013, 09:37:36 PM »
Thanks, Rawraw.

Wonder whose genius idea.  So if one pays late and not call in advance, s/he will end up to pay late fee.  But s/he calls in first to say promise to pay, s/he can avoid the late fee.   Wonder whether all my creditors have the same system.  I shall be late and call later to promise to pay to avoid the fee.   Darn. it did not work with my County Property Tax Collector last time.
Well LC actually contacts them.  So they don't even have to take initiative -- just answer the call and promise.

New Jersey Guy

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Re: Late Fee
« Reply #4 on: July 03, 2013, 10:42:36 PM »
Actually, not receiving late fees doesn't bother me a bit.

I mean, on a $25 note, what are we talking?  4-cents?  5-cents?
To the borrower, though, they pay the late fees on the entire loan which could be several dollars.  If the borrower is struggling, the late fees are no more than fuel on the fire.

I'm happy to forfeit my nickle to a good borrower determined to make good on making some sort of payment on the loan.

Now, that's just me.  Sarah?  She'd be posting new topics on the forum about how she lost her nickle.  She would put the note on a hang-mans noose and promptly list it on Folio with a note that says "Hope you burn in hell".
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

SarahV

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Re: Late Fee
« Reply #5 on: July 03, 2013, 11:05:47 PM »
Now that's just not true. I don't even believe in hell!

pplinvestor

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Re: Late Fee
« Reply #6 on: July 04, 2013, 03:40:38 AM »
Nickels can add up quickly.  For the example note I gave above, that's 6 nickels loss.  I know you'll sell after the first late.  Still for every $25 investments, investors stands to loose half dozen nickles.
Also, late fee is there to deter borrower from being late.  That borrower certainly learned to game the LC system to avoid late fees.  Of course, LC does not have much lever if a borrower does not pay.  I guess waiving late fee is the carrot they use to entice borrower to pay.
Still, I think there shall be consequences for borrower's tardiness.  Will LC report to credit agencies if the payment is late even though the late fee is waived?

rawraw

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Re: Late Fee
« Reply #7 on: July 04, 2013, 07:28:35 AM »
Now that's just not true. I don't even believe in hell!
I'm sure you don't believe in hell, more as a life sentence in a debtor prison.  She hates people who misses a payment OR if the person isn't "Pristine" enough for her portfolio. I just hope one day I am worthy enough for her friendship -- I'm quickly deleveraging and trying to get my FICO above 800!