Author Topic: LendingClub locked my account and is keeping my money  (Read 23861 times)

core

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Re: LendingClub locked my account and is keeping my money
« Reply #15 on: July 26, 2013, 04:55:56 PM »
And I'm back in the account.  Looking right at it.  What a great feeling.  Turns out from all the languishing notes I only lost a couple grand from when I saw it last.  Hey, it could be worse. 

Now back to making some cash!  I can go back to my normal jovial paranoid delusional self on the forums.  Let's hope I don't mysteriously disappear or have my car blow up tonight, now that I've posted a happy ending which is exactly what "They" were waiting for.  :)

Just so that I can get a better picture of all this, how many 3rd party sites are you using with this account? Are you in a Folio only state?

Yes, I live in a Folio-only state.  Otherwise I might not have ever seriously gotten into trading at all.  I actually don't use any 3rd party sites full-time, and turns out they had nothing to do with it anyway.  Most of the heavy lifting I do myself; all custom.  The multiple IPs I was worried about came from hundreds of proxies that are necessary for technical reasons.  (I'm on satellite out here)  All those IPs are probably banned by now; I didn't ask them what else they did during all this.  I'm just glad to be back in.  I'll be sorting out the IP aftermath later.

Are you using a commonly available "note relisting browser plugin", or one you wrote yourself?

One I wrote myself.  It wasn't the tool's fault though.  User error.
« Last Edit: July 26, 2013, 05:21:08 PM by core »

yojoakak

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Re: LendingClub locked my account and is keeping my money
« Reply #16 on: July 26, 2013, 11:50:21 PM »
Apparently what started all this was the way my note reslisting browser plugin was configured.  I won't go into details because it would be open to abuse (and boy was I floored when I heard the explanation)...

Could you send me a PM with the details? I publish a browser extension and I would like to make sure it's not doing anything that would raise their ire.

Thanks.

Here's a link to the script: http://userscripts.org/scripts/show/103295

neals384

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Re: LendingClub locked my account and is keeping my money
« Reply #17 on: July 29, 2013, 02:43:29 AM »
I see LC's reasoning now.  If anyone hit my account from hundreds of LCs/proxies I would want them to lock the account...and call me immediately.  So they got it half right.

core

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Re: LendingClub locked my account and is keeping my money
« Reply #18 on: July 29, 2013, 02:55:57 AM »
For what it's worth, all those proxies were from the same class C so it's not _that_ unusual looking.

They got it half right you said?  Well it only took them 2 years to notice all those IPs.  Don't count on getting any calls from them anytime soon if something like that happens to you.

core

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The plot thickens
« Reply #19 on: July 29, 2013, 07:51:49 PM »
It looks like LendingClub giving me access to my account may have only been a token gesture. 

The first thing I did Friday after getting back in the account was to request a sizable withdrawal.  Here we are Monday and it appears they have canceled the withdrawal and put the cash back in my account.  I requested a smaller one today hoping to slip under the automatic processing radar and that too eventually appeared to be canceled.

I called them and asked what was up.  The guy read the notes from the past couple weeks and said I would need to talk to a colleague of his.  "Please tell me it's not Stephanie", I pleaded.  "Yeah actually it is."  Of course she wasn't available to take calls at the moment.  Here we go again.

The guy on the phone said it appeared that the first one might still be pending, so it's remotely possible this will turn out ok still.  But I have never ever heard of them restoring the original available balance while a withdrawal was pending.  Has anyone else seen that?

LC withdrawals are always lightning-fast, they always hit my bank account the very next day.  So I will know for sure tomorrow morning.  It's not looking good though.

DanB

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Re: LendingClub locked my account and is keeping my money
« Reply #20 on: July 30, 2013, 03:17:14 PM »
Update us please.

core

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Re: LendingClub locked my account and is keeping my money
« Reply #21 on: July 30, 2013, 03:36:40 PM »
Good timing Dan, I was just dropping by to do just that.

As I expected, no money in my bank account.  However I was pleasantly surprised when I received an unprompted call from LendingClub this morning.  Mike again.  He said yes, that department canceled both withdrawals.  However he said he straightened things out and I must re-request my withdrawal.  I have done just that, and we shall see how it goes.

I would like to know why the CSR from yesterday didn't even know they were canceled (looking right at the account), why I wasn't notified and had to play detective with the numbers, and why everything over there seems like a cluster***.

It's all monopoly money until it's safely in your bank account.  That much I have learned.

I have purchased a huge 20lb bag of cat food.  Just in case.  :)
« Last Edit: July 30, 2013, 03:40:05 PM by core »

GS

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Re: LendingClub locked my account and is keeping my money
« Reply #22 on: July 30, 2013, 04:43:30 PM »
I have purchased a huge 20lb bag of cat food.  Just in case.  :)

If it turns out you don't need the cat food, SarahV knows some people ...

https://www.lendingclub.com/foliofn/loanDetail.action?loan_id=3498927

New Jersey Guy

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Re: LendingClub locked my account and is keeping my money
« Reply #23 on: July 30, 2013, 05:23:55 PM »
"If it turns out you don't need the cat food, SarahV knows some people ..."

Yea, she'll probably need it to help keep that note current.
I wouldn't have bought it even for my speculative notes.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

DanB

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Re: LendingClub locked my account and is keeping my money
« Reply #24 on: July 30, 2013, 06:12:44 PM »
I'm sorry, but as much as I like to uncover humor in most situations, I find no humor in this & no plausible legitimate excuse that would make Lending Club's behavior in this situation acceptable.

What did Core do to get all this attention drawn to himself, you ask? I don't really know for sure, but having reflected on all this, I don't think it really matters at this point.  If you don't want someones business, that's fine.............liquidate their account & kick them out. Lending Club is a financial services company. They are not a bank that is guaranteed by the government. The ONLY thing LC has going for themselves is "trust".........that is all. Nothing else is worth crap if trust becomes an issue. Short of disappearing with someones money, I can't think of a better way to bring "trust" into question than to make it difficult for someone to access their own money......................but that is precisely what they've done here.  And this is the company that is supposedly going to transform & revolutionize banking? Great!

rawraw

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Re: LendingClub locked my account and is keeping my money
« Reply #25 on: July 30, 2013, 06:15:38 PM »
I'm sure LC has regulations they have to follow.  FolioFN I'm sure brings up BSA red flags.  Not sure what Core did, but it may be more complex than you are giving it credit for.  But it may be simple as well -- Core only knows, since he has decided not to share :'(

DanB

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Re: LendingClub locked my account and is keeping my money
« Reply #26 on: July 30, 2013, 06:35:32 PM »
I'm sure LC has regulations they have to follow.  FolioFN I'm sure brings up BSA red flags.  Not sure what Core did, but it may be more complex than you are giving it credit for.  But it may be simple as well -- Core only knows, since he has decided not to share :'(

Rawraw................So why deny access to an account for 2 weeks & then grant access immediately after the account holder makes it public? What about regulations?  And why grant access but limit the ability to withdraw? And not inform the account holder that they can't withdraw? Or was it incompetence in that things that needed to be done to reactivate, just weren't done?
Regulations Rawraw? I think not.  Hey, I get it Rawraw. I'd like to know what Core did as well. But I'm not going to let that curiosity obscure the mounting evidence that this has all been handled very badly by LC.

core

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Re: LendingClub locked my account and is keeping my money
« Reply #27 on: July 30, 2013, 06:46:45 PM »
If you don't want someones business, that's fine.............liquidate their account & kick them out.

Exactly.  In that order though.  What would make that a little tricky though is how much do you give the guy for his notes?  Especially the ones in grace or worse?  Hairy situation.

As for what I did, you're right, it kinda doesn't even matter at this point.  I will say that it's nothing that I'm sure doesn't already happen all the time.  It was the sheer volume in this case (100% of my portfolio all at once due to my plugin) that got me in trouble.  Their platform is presently a bit on the broken side in my opinion, that this could even happen.  This issue is going to happen again to other people, it probably does daily, but a note here and there will just be quietly solved by LC I'm sure.

I should add that on Friday I was cautioned to make sure this does not happen again, accidentally or otherwise.  Or they will close my account.  (If I had the guts I should have asked them exactly how that would go down.)  Thus I have to be much more careful about my trading and what I do on the platform than other people do.  As a trader I'm handicapped as a result but it's better than being out a lot of money.

Interesting thought I was pondering:  In the event of a lawsuit, do you really think you'd have a case for getting back more than you deposited?  I mean that's really your only damages, plus maybe a nominal interest rate.  If you made a decent/killer return and were playing solely with the house's money all this time, I really wonder how that case would play out.

If it turns out you don't need the cat food, SarahV knows some people ...

Jinkies, $33k buys a lot of kibble!

DanB

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Re: LendingClub locked my account and is keeping my money
« Reply #28 on: July 30, 2013, 07:23:22 PM »
Core............Without specifics all I'm comfortable in saying is that every dollar in your account regardless of how you earned it, is yours & you should have no doubts as to that..................unless LC has specifically told you that they are nullifying whatever trades made. It's easy to forget that none of this "money" in question is Lending Clubs money. So if money is removed from one customer account then it has to be deposited into another customers account.

Have they already or have they told you that they intend to nullify past trades? Have they told you that the matter is now settled as long as you don't do xyz in the future? 

core

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Re: LendingClub locked my account and is keeping my money
« Reply #29 on: July 30, 2013, 07:44:28 PM »
Yes, trades were unwound as part of this fiasco.   I'm not upset about that; busted trades are just an unpleasant part of the game.  Happens quite a bit, especially when some complainypants sells the wrong note at a 30% discount.  I've gotten used to it.  Once settled though they stay.

Have they already or have they told you that they intend to nullify past trades? Have they told you that the matter is now settled as long as you don't do xyz in the future? 

Yes the matter is now settled as far as I know.  I don't expect any more adjustments to take place.