Author Topic: What LC Could Do to Level the Playing Field  (Read 3240 times)

avid investor

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What LC Could Do to Level the Playing Field
« on: August 29, 2013, 09:15:15 AM »
With large investors buying notes WHOLE (yes, I said whole - in addition to being investors, we borrowed last year - the note was purchased by ONE investor), smaller investors trying to diversify (as LC advises) don't stand much of a chance to find as many of the loans that they want.

I suggest that we start a campaign to pressure LC to limit investment on any given note (you pick the number, say $1,000?)

Given that most notes are in the $10k to $30k range, that would mean at least 10 to 30 investors would get a shot at each of these loans.

core

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Re: What LC Could Do to Level the Playing Field
« Reply #1 on: August 29, 2013, 09:35:40 AM »
LC went out of their way to GIVE those whole loans to the institutions.  That's the whole point of the whole loan program.  Sounds like your loan was one of them.  The regular loans that don't get reserved for that program already have a limit, 75% I believe it is.

There were tons of ideas tossed around in this thread:  Fairer Solutions to Excess Investor Demand

I think that deceased pony is pretty well whipped.

avid investor

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Re: What LC Could Do to Level the Playing Field
« Reply #2 on: August 29, 2013, 09:38:04 AM »
I guess the point is that "regular" investors need to be aware - either LC gets some pressure to level the playing field and does so, or they do not.  Either way, it will be "message received".  As already noted on this forum, it could mark the end of true P2P lending as we know it - unless someone starts a competing enterprise with the limiting in place.

core

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Re: What LC Could Do to Level the Playing Field
« Reply #3 on: August 29, 2013, 09:44:11 AM »
Well I can say one thing:  Sending them emails to "pressure" them isn't going to help, and talking about it on this forum is largely preaching to the choir at this point.  The best campaign would be to concentrate one's efforts to more mainstream channels with a wide audience.  Particularly in this time leading up to the IPO.  That's the only time it has a snowball's chance of having any effect.   Yes, it's already not P2P and they've admitted that, so I agree with you there.  We passed P2P a few miles back.

cfb

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Re: What LC Could Do to Level the Playing Field
« Reply #4 on: August 29, 2013, 12:10:34 PM »
Particularly in this time leading up to the IPO.

I may be adding 2+2 and getting 5, but I suspect the reason why we're seeing more notes the last few days is because they did something to make them more available to the retail investors as they approach the IPO.  I feel that going into it viewed as an institutional investment channel is less appealing than a folksy p2p lender.  Having lots of smaller individual investors squawking that its only working for the big guys with automated systems just before the IPO might turn some potential LC stock buyers off.

core

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Re: What LC Could Do to Level the Playing Field
« Reply #5 on: August 29, 2013, 12:18:56 PM »
Call me a cynic, but if they had the ability to snag all these borrowers from credit unions or other sources they would have done it long ago.  And nobody's seen any commercials or massive ad campaigns, have they.

This is why I'm half-seriously starting to wonder if they are overselling the loans and issuing notes on debt which does not exist.  The pennies in interest they'd have to pay would be more than made up for by avoiding all the negative PR.  You can treat this suggestion as the ravings of a lunatic because after all I am a conspiracy theorist but think on it for a while.

standby

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Re: What LC Could Do to Level the Playing Field
« Reply #6 on: August 29, 2013, 01:47:27 PM »
Maybe they should just go back to calling it institutional lending.

dontvote

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Re: What LC Could Do to Level the Playing Field
« Reply #7 on: August 29, 2013, 07:08:59 PM »
Call me a cynic, but if they had the ability to snag all these borrowers from credit unions or other sources they would have done it long ago.  And nobody's seen any commercials or massive ad campaigns, have they.

This is why I'm half-seriously starting to wonder if they are overselling the loans and issuing notes on debt which does not exist.  The pennies in interest they'd have to pay would be more than made up for by avoiding all the negative PR.  You can treat this suggestion as the ravings of a lunatic because after all I am a conspiracy theorist but think on it for a while.

I agree you border on lunacy.
dontvote

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