Author Topic: What to do with notes like these.......  (Read 4407 times)

supergeek62

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What to do with notes like these.......
« on: September 16, 2013, 11:19:55 PM »
Notes like these drive me crazy - the payment was due a while ago, yet there is no information saying the payment failed, etc, so I never know what to think.  Usually I dump them at a big loss, then the payment shows up within a day or two.  Any thoughts or advice?

https://www.lendingclub.com/account/loanPerf.action?loan_id=6579184&order_id=9889505&note_id=28068512

Loan ID #6579184

Thanks!

pplinvestor

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Re: What to do with notes like these.......
« Reply #1 on: September 17, 2013, 03:15:20 AM »
It's still in grace period.  The borrower did not use auto payment to make payment and hence there is no payment failed.  It is simply no payment.  LC will not contact the borrower until grace period expired.  Why do you expect LC contact the borrower within grace period? 
You can sell the note with small discount or you hold onto it and take the risk

Rob L

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Re: What to do with notes like these.......
« Reply #2 on: September 17, 2013, 09:01:01 AM »
Interest Radar includes Grace period loans in your list of late/default status loans in the Risk tab of My Portfolio. Display the list of these impaired loans and you can click on them one at a time. Typically in the Performance section for that loan "Probability of Curing" is displayed and it's usually 77% -84%. Maybe this will help you with the decision to sell, and help price the note if you do.

supergeek62

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Re: What to do with notes like these.......
« Reply #3 on: September 17, 2013, 09:07:26 AM »
Thanks for the tips, much appreciated!  Just to clarify, though, I thought all LC loans were on an auto payment plan?  I was under the impression that borrowers didn't have the option of mailing in a check, etc?

I found this on the Lending Club website:


Normal Course of Operations

The primary method of payment for all Lending Club accounts is via an electronic funds transfer whereby we withdraw monthly payment amounts from the borrower's bank account. When the funds are there, they are automatically remitted to Lending Club for distribution to the individual investors who purchased the Notes corresponding to the loan. If the debit transaction fails for any reason, our member support team will contact the borrower that same day via telephone and e-mail. In the majority of cases, our member support team is successful in reaching out to the borrower. A borrower may indicate to us when funds will be available, in which case we can successfully re-present the payment within a few days.


So I guess it doesn't say that auto pay is mandatory, just that it is the primary method......
« Last Edit: September 17, 2013, 09:23:27 AM by supergeek62 »

DanB

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Re: What to do with notes like these.......
« Reply #4 on: September 18, 2013, 12:20:48 PM »
Thanks for the tips, much appreciated!  Just to clarify, though, I thought all LC loans were on an auto payment plan?  I was under the impression that borrowers didn't have the option of mailing in a check, etc?

I found this on the Lending Club website:


Normal Course of Operations

The primary method of payment for all Lending Club accounts is via an electronic funds transfer whereby we withdraw monthly payment amounts from the borrower's bank account. When the funds are there, they are automatically remitted to Lending Club for distribution to the individual investors who purchased the Notes corresponding to the loan. If the debit transaction fails for any reason, our member support team will contact the borrower that same day via telephone and e-mail. In the majority of cases, our member support team is successful in reaching out to the borrower. A borrower may indicate to us when funds will be available, in which case we can successfully re-present the payment within a few days.


So I guess it doesn't say that auto pay is mandatory, just that it is the primary method......


Don't feel bad. Many, perhaps most, of the people here aren't aware of that either, including a few of the "experts".  In fact, a couple thousand regular payments made to LC each month don't come through the ACH system.
« Last Edit: September 18, 2013, 12:24:48 PM by DanB »

yojoakak

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Re: What to do with notes like these.......
« Reply #5 on: September 18, 2013, 01:38:49 PM »

Don't feel bad. Many, perhaps most, of the people here aren't aware of that either, including a few of the "experts".  In fact, a couple thousand regular payments made to LC each month don't come through the ACH system.

If it was a check, the Collection Log ought to say "check received".

What other methods are there?

Is it possible to pay in cash at 7-11, like your electric bill?

core

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Re: What to do with notes like these.......
« Reply #6 on: September 18, 2013, 01:44:23 PM »
Oh no, please don't get him started on the collection log again!

DanB

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Re: What to do with notes like these.......
« Reply #7 on: September 18, 2013, 06:23:06 PM »

Don't feel bad. Many, perhaps most, of the people here aren't aware of that either, including a few of the "experts".  In fact, a couple thousand regular payments made to LC each month don't come through the ACH system.

If it was a check, the Collection Log ought to say "check received".

What other methods are there?
 

Is it possible to pay in cash at 7-11, like your electric bill?

As far as I know, the only alternative to ACH is a mailed payment (i.e. check or money order). By popular request, I'm not going to comment on what a collection log "ought" to say or do. Of course there are many things in the world that ought to work a certain way...........& yet sometimes fall short of that target.

core

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Re: What to do with notes like these.......
« Reply #8 on: September 18, 2013, 06:37:05 PM »
By popular request, I'm not going to comment on what a collection log "ought" to say or do.

Actually, I was only kidding.  I can think of nothing more fun to read than another multi-page argument about the accuracy of the collection log.

Isn't anyone going to ask Dan how he knows there are 2,000 mailed payments being processed by LC each month?

DanB

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Re: What to do with notes like these.......
« Reply #9 on: September 18, 2013, 06:46:43 PM »
Oh no, please don't get him started on the collection log again!

No, it's ok, I've learned my lesson. Questioning the sanctity of this "collection log" has a similar effect on "believers" here, as questioning the existence of Gods has with some religious people. Both acts are highly destabilizing........... particularly to individuals that are susceptible to easy destabilization. So for the common good, I will speak of it no more.  :)

PS........... I said a couple of thousand & misspoke. What I should have said was "a few thousand".  Please forgive my error, English isn't my first language.

core

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Re: What to do with notes like these.......
« Reply #10 on: September 18, 2013, 06:48:32 PM »
PS........... I said a couple of thousand & misspoke. What I should have said was "a few thousand".  Please forgive my error, English isn't my first language.

Well the question still remains, where did you get this info?  Was it 2007 data or is this recent? 

By the way, what language is your first?

DanB

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Re: What to do with notes like these.......
« Reply #11 on: September 18, 2013, 10:13:59 PM »
PS........... I said a couple of thousand & misspoke. What I should have said was "a few thousand".  Please forgive my error, English isn't my first language.

Well the question still remains, where did you get this info?  Was it 2007 data or is this recent? 

By the way, what language is your first?

Why does it matter how I know or where I got the info? The only thing that matters is whether it is correct. Though I may have a reputation on this site for being, among other things, a pain, argumentative & for being evasive..............I'm pretty sure I don't have a reputation for spreading incorrect or grossly outdated information. Therefore I see no need to provide footnotes for what I say. My track record on accuracy speaks for itself.

My first language is Portuguese...........No, I'm not calling my parents & having them drag out old report cards from 1st grade in order to prove that to you  :) 

supergeek62

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Re: What to do with notes like these.......
« Reply #12 on: September 19, 2013, 11:57:09 PM »
Thanks for the info everyone.  Interesting to know that not all payments are the auto ACH type!

core

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Re: What to do with notes like these.......
« Reply #13 on: September 20, 2013, 12:23:07 AM »
The collection log has to be 100% true, otherwise LC would be in a predicament when/if it became necessary to sue the borrower.  And when the borrower calls in next time it is essential that the associate has an accurate record of the previous calls.

The collection log works in mysterious ways.  The nonbelievers will feel the lick of fire on judgement day.

yojoakak

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Re: What to do with notes like these.......
« Reply #14 on: September 20, 2013, 12:18:49 PM »
The collection log has to be 100% true, otherwise LC would be in a predicament when/if it became necessary to sue the borrower.  And when the borrower calls in next time it is essential that the associate has an accurate record of the previous calls.

The collection log works in mysterious ways.  The nonbelievers will feel the lick of fire on judgement day.

LC will sometimes combine multiple payments, even on different days, into a single payment in the Payment Log. (You have to go to Account Activity to see the real data.) And the Payment Log doesn't include Service Fee rebates.

So the Payment Log we see isn't the "real" payment log.


Then the question becomes:

Is the Collection Log we see the "real" collection log.

Or do they keep that locked up in an internal database somewhere?