Author Topic: It may not be verified.. but seriously....  (Read 2663 times)

lender_john

  • Jr. Member
  • **
  • Posts: 88
    • View Profile
It may not be verified.. but seriously....
« on: October 09, 2013, 10:04:04 AM »
https://www.lendingclub.com/foliofn/loanDetail.action?loan_id=2294590

I understand that people can just put in whatever they want into the fields... But you would think that LC would do some sort of basic validation if they don't do verification..
The income is obviously for the year or a typo...

Joleran

  • Full Member
  • ***
  • Posts: 151
    • View Profile
Re: It may not be verified.. but seriously....
« Reply #1 on: October 09, 2013, 10:12:48 AM »
It's a pity too, because that's not a bad loan if it weren't that it'll be thrown back for the typo.

Edit: just noticed it went through and was issued.  That is pretty crazy.

New Jersey Guy

  • Hero Member
  • *****
  • Posts: 914
  • Hell Yea it's a Hemi!
    • View Profile
    • Email
Re: It may not be verified.. but seriously....
« Reply #2 on: October 09, 2013, 11:18:24 AM »
Typo is right.  Probably a yearly income.

Here would have been my red flag:


Q: If using your loan for multiple purposes, what are the purposes and how are you allocating the money across them?
A: (01/16/2013-13:48) - Credit Cards $23,000, Income Taxes $12,000

Like it's been stated a million times on this forum.  It's a shame the loans are getting scooped up so fast.  Q & A's have become the rare exception and so much gets missed.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

core

  • Hero Member
  • *****
  • Posts: 1784
  • Your loss is my gain
    • View Profile
Re: It may not be verified.. but seriously....
« Reply #3 on: October 09, 2013, 11:31:29 AM »
Ok, so the guy made a simple mistake and selected the wrong checkbox when entering his (decent) income.  Or a simple typo, how ever the the form is set up.  Now suddenly the loan is a poor risk?  Should we ban him from applying at LC again?  Or get a rope?  ;D

Here would have been my red flag:

Q: If using your loan for multiple purposes, what are the purposes and how are you allocating the money across them?
A: (01/16/2013-13:48) - Credit Cards $23,000, Income Taxes $12,000

Aw, NJG guy, you don't like people who get a little behind on their taxes? :)  I've owed 5x that in the not too distant past.  It's easy to do if you get busy with a business project and let the books slide a little.  Next thing you know, you owe a bunch in taxes and you found this out right after you invested all of your spare cash back into the business.  Or how about having the state come after you for 9 year old crap, saying you owe $20k when at this point all the records are long gone, your broker at the time with the records is now long out of business.  We're not all bad credit risks.

New Jersey Guy

  • Hero Member
  • *****
  • Posts: 914
  • Hell Yea it's a Hemi!
    • View Profile
    • Email
Re: It may not be verified.. but seriously....
« Reply #4 on: October 09, 2013, 02:40:40 PM »
"Aw, NJG guy, you don't like people who get a little behind on their taxes?"

Nope.  Would you invest in loans when the borrower is showing tax liens?  As far as I'm concerned that's a step or two away from a lien.  No thanks.

Everybody looks for that little edge or red flag that might prevent a default.  So to me, "I need the money to pay my taxes" equates to the same as "I need the money to catch up on my bills".

Core, with the money you have just stacked up on pallets in your living room, a $12K tax problem is nothing more than a simple gratuity.  But to a regular (NJ)Guy like me, $12K is a lot of money, especially when you owe it to the IRS! I can think of more enjoyable ways to create a $12K debt!

I agree with you.  Problems happen.  Unfortunately when looking at an online application, the details don't present themselves like you insinuated, and one has to assume the worst.  It's nothing but black and white.

On the other hand, if that's your application shown as the example, let me know!  I'll swing $25 or $50 to help you out.  That's just the kinda (NJ)Guy I am!  Anything of for a friend!
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

core

  • Hero Member
  • *****
  • Posts: 1784
  • Your loss is my gain
    • View Profile
Re: It may not be verified.. but seriously....
« Reply #5 on: October 09, 2013, 03:48:29 PM »
Everybody looks for that little edge or red flag that might prevent a default.  So to me, "I need the money to pay my taxes" equates to the same as "I need the money to catch up on my bills".

It could be.  Or it could be that the borrower has been on a payment agreement with the IRS for quite some time and just wants to get the IRS off his back.  Then again maybe he's about to declare BK and is being savvy about it.  Who knows.

The IRS ain't so bad.  The interest is very reasonable (currently 3% simple interest) and the penalties and fees stop racking up after a few years.  Setting up a payment agreement via the web stops all their collection efforts instantly so there's always that option if one gets to feel backed into a corner.  I found the secret to dealing with the IRS though:  Ignore them, hide all your assets, and make sure you don't have any W2 income that they can garnish.  They'll just put you in currently not collectable status and go away.  Wait 10 years for the SOL to run out and you're scott free.  You can even keep filing each year as if nothing has happened.  Just don't expect to receive any returns you may be due.

Core, with the money you have just stacked up on pallets in your living room, a $12K tax problem is nothing more than a simple gratuity.  But to a regular (NJ)Guy like me, $12K is a lot of money, especially when you owe it to the IRS! I can think of more enjoyable ways to create a $12K debt!

Hey $12k is a respectable pile of money to me as well.  At least it is now.  I no longer keep boxes of paper currency in my living room though, as much as I enjoyed organizing it all in those little currency straps.  I found that when I kept cash around it didn't seem like "real money" and I felt much more inclined to spend it on frivolous things such as ladies of negotiable virtue.

On the other hand, if that's your application shown as the example, let me know!  I'll swing $25 or $50 to help you out.  That's just the kinda (NJ)Guy I am!  Anything of for a friend!

I've tried many times, unfortunately LC doesn't allow borrowers from locations that DanB judges to be "flyover states".  DanB must secretly be working as the risk management consultant over there.  If they ever let me in though and give me a loan, I guarantee the very first thing I'm going to do is make LATE payments so I can gobble up my own notes at a discount on Folio.  As well as do all the other naughty (but perfectly legal) things that have been brought up here before.  I can't wait for that IPO!