Author Topic: Accrued interest no longer reported in Account Total  (Read 7696 times)

GS

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Re: Accrued interest no longer reported in Account Total
« Reply #15 on: October 10, 2013, 10:45:31 AM »
I didn't mind accrued interest being included, but I thought it was strange and somewhat misleading to include it in the account total before it's actually been paid.

lender_john

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Re: Accrued interest no longer reported in Account Total
« Reply #16 on: October 10, 2013, 10:46:19 AM »
I prefer this way.. but as always it would be nice if there was some sort of notice...

Randawl

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Re: Accrued interest no longer reported in Account Total
« Reply #17 on: October 10, 2013, 06:45:05 PM »
LC just posted an explanation for removing accrued interest.

Quote
Recently, accrued interest was removed from the Account Total calculation. Accrued interest is interest on a Note that has accumulated, but has not yet been paid. Interest accrues regardless of Note status, whether the Note is current or late, however, interest does not accrue on Notes that are in default or that have been charged off.  Accrued interest does not increase the actual cash in the account nor the account’s Net Annualized Return. By removing accrued interest, investors will experience a moderate drop in the Account Total value until such time as the payments actually arrive. Importantly, the change in value is due to accrued interest being removed from the calculation and does not reflect an actual change in the total realized account value.
 

Accrued interest is a valuable tool for understanding the cash flow of an account. As such, accrued interest is still reported and can be viewed on the More Details page. In addition, accrued interest can be viewed on a Note level by navigating to the My Notes section and on the Loan Performance Page of a specific Note.


https://kb.lendingclub.com/index.php?View=entry&EntryID=258

Xin

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Re: Accrued interest no longer reported in Account Total
« Reply #18 on: October 11, 2013, 03:47:38 AM »
They should have a patchnotes update regular on their blog. Those of you who play video games might know what I'm talking about.

Rob L

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Re: Accrued interest no longer reported in Account Total
« Reply #19 on: October 12, 2013, 09:36:42 AM »
I'll throw in my 2 cents worth and say I like  the change. When I first started trying to figure how things worked it just added a little to the confusion. Later I viewed it cynically as a lame attempt by LC to make things look better than they actually are. LC was open to criticism for it and I think that's why this was done. It was a smart move on LC's part to move it down to the additional details area.

I strongly agree with everyone before that criticized LC for not having provided its customers with some advanced notice (or even simultaneous notice) of the change. I would appreciate a simple one-way, "do not reply to", opt-in or opt-out email service for changes such as this, the more important "employment" change to browsenotes recently, etc.  I think LC would certainly get a nice round of applause from the forum members here if they provided such.

core

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Re: Accrued interest no longer reported in Account Total
« Reply #20 on: October 12, 2013, 10:46:55 AM »
I would appreciate a simple one-way, "do not reply to", opt-in or opt-out email service for changes such as this, the more important "employment" change to browsenotes recently, etc.

Hear, hear!  This is badly needed.  I would be pleasantly surprised if that ever happened.  I believe they use these unannounced changes to throw off automated tools.  Also they can secretly disclose such changes ahead of time to select insiders/institutions/journalists to make them feel more valued, give them an edge, or whatever the end goal might be.  If everyone had the same information, of what value would having direct numbers for higher-ups be?