Author Topic: LC Engaging Collections Agency Sooner  (Read 3203 times)

Randawl

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LC Engaging Collections Agency Sooner
« on: July 26, 2013, 01:18:15 AM »
It seems that Lending Club is initiating usage of their collection agency much sooner than before.  Historically, notes would have to be 60 or more (and sometimes 90) days late before going into collections.  Now, many notes that are freshly 31 days late are being sent to collections.
This seems to coincide around the same time they streamlined their payment processing times.

Anyone else notice this?

SeanMcD

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Re: LC Engaging Collections Agency Sooner
« Reply #1 on: July 26, 2013, 06:16:37 PM »
I just saw one go a lot faster than that - external collections engaged the day after the first missed payment, before the loan had even gone into Grace Period.  No idea what happened there, but the loan went back to Current pretty quickly, so I won't complain.

https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=3289900&order_id=5432245&note_id=19191467

core

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Re: LC Engaging Collections Agency Sooner
« Reply #2 on: July 26, 2013, 07:32:14 PM »
I have seen them actually do a skip trace before the 30 days are up.  I would guess it depends on the situation.  If LC calls and the borrower says "just try to collect from me" I'm guessing it hastens the process.

yojoakak

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Re: LC Engaging Collections Agency Sooner
« Reply #3 on: July 27, 2013, 12:45:55 AM »
I have seen them actually do a skip trace before the 30 days are up.  I would guess it depends on the situation.  If LC calls and the borrower says "just try to collect from me" I'm guessing it hastens the process.

"skip trace" doesn't mean much. It can be as trivial as looking for alternative phone number in the white pages.

pplinvestor

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Re: LC Engaging Collections Agency Sooner
« Reply #4 on: July 27, 2013, 02:39:34 PM »
I just saw one go a lot faster than that - external collections engaged the day after the first missed payment, before the loan had even gone into Grace Period.  No idea what happened there, but the loan went back to Current pretty quickly, so I won't complain.

https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=3289900&order_id=5432245&note_id=19191467

Does that mean LC/Collection Agency will charge more, Collection fee?   

SeanMcD

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Re: LC Engaging Collections Agency Sooner
« Reply #5 on: July 29, 2013, 05:14:29 PM »
I just saw one go a lot faster than that - external collections engaged the day after the first missed payment, before the loan had even gone into Grace Period.  No idea what happened there, but the loan went back to Current pretty quickly, so I won't complain.

https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=3289900&order_id=5432245&note_id=19191467

Does that mean LC/Collection Agency will charge more, Collection fee?

There were no additional collection fees for that particular note - normal payment and service fee.