FolioFN and Payments Recieved

[Joleran]

OK, yep, I just had notes cancel, including one that was supposed to be settling today and just started processing today.  This sucks.

Ugh, another one I had cancel is on a payment plan for the 18th, but since it's "Processing" I guess it can't go up there.  Really, really, frustrating change.

These were both going to settle fine and normal tonight, as in someone already bought them.  Now we're both going home sad.

[Joleran]

Could this mean that payments being posted (as in a grace period or late note that just posts a payment out of nowhere via check) no longer cancels the sale?

It definitely means that you need to close the sale at least two days before the payment would start processing, or you'll get caught up in their ridiculous canceling system.

[Bohb Daishi]

Yes, and also in the "helpless" category are people who can't figure out what 70% markup means, or that negative yield means... negative yield.  Complicated stuff like that.  Yet these same people figured out how to plug in a computer and operate it.  Somehow.

Keep in mind, EVERYONE on LC and Prosper are supposed to be "Accredited Investors". You know, people who make upwards of $200k per year and/or have $1MM to their name. These people are supposed to be experienced and have a good understanding of risk.

Next they'll probably disallow the selling of BK/deceased notes.  You just watch.  Then no more selling of 31+ lates.  And way down the road, assuming there's even a trading platform still in existence, they'll probably limit your discount/markup to a narrow window that they decide is appropriate for that note.

I've only taken a glance at it, but isn't that how Prosper is? Current notes only?

It's complete BS if LC stops allowing people to sell 31+ late notes.

[core]

Keep in mind, EVERYONE on LC and Prosper are supposed to be "Accredited Investors". You know, people who make upwards of $200k per year and/or have $1MM to their name.

Not true, unless you live in Kentucky.  All that is required is that you meet the financial suitability requirements for your state and have an income of $70k and a net worth, excluding house and auto, of $70k.  California is slightly higher.  (California ALWAYS has to be freaking different, with everything.)    Even in CA you can invest $2500 if you don't meet their criteria. 

I've only taken a glance at it, but isn't that how Prosper is? Current notes only?

It's complete BS if LC stops allowing people to sell 31+ late notes.

Yes, that's how Prosper is, and yes it's complete BS.  I'm telling you, they're not done playing nannies yet.  They won't stop until it's impossible for someone to lose money by being an idiot.  People who don't read the collection log are next on their list of helpless people to "help", I'll just bet.

[Bohb Daishi]

People who don't read the collection log are next on their list of helpless people to "help", I'll just bet.

Well, just look at the end of their announcement: "We have more changes (including additional filters) that will be coming over the next 4-6 weeks.  Stay tuned!"

I wouldn't be surprised if they added a filter for bankrupt notes.  But I don't think they'll switch to an auction format like Prosper, nor completely disallow trading past-due notes. One of their biggest selling points is that Folio adds liquidity to your portfolio. Not only that, but they would also be dooming people to accept the risk of charge-off instead of allowing them to at least get a few dollars back on their investment.

[Bohb Daishi]

Keep in mind, EVERYONE on LC and Prosper are supposed to be "Accredited Investors". You know, people who make upwards of $200k per year and/or have $1MM to their name.

Not true, unless you live in Kentucky.  All that is required is that you meet the financial suitability requirements for your state and have an income of $70k and a net worth, excluding house and auto, of $70k.  California is slightly higher.  (California ALWAYS has to be freaking different, with everything.)    Even in CA you can invest $2500 if you don't meet their criteria. 

Did that change recently (or have anything to do with the recent JOBS act rules)? When I signed up (Illinois), the requirements were very strict.

[core]

Did that change recently (or have anything to do with the recent JOBS act rules)? When I signed up (Illinois), the requirements were very strict.

The requirement has never been "accredited investor" (Rule 501(a) of Regulation D) for as long as I remember.  But that term does get thrown around (misused) on p2p sites quite a bit.  Maybe the requirements were much stricter before the 2008 Great Awakening... I wasn't around then.  Restricting it to accredited investors would kinda take the common Joe 'peer' aspect out of it.  If someone wanted to dig up the details they could probably use archive.org and check old snapshots of the lender agreement. 

[rawraw]

The 70/70 rule is for LC.  But some states require it.

[jinglander]

Preventing the whole trick thing was done with a shotgun and took out the ability to sell notes that had just started processing but would clear before the payment posted, so that's pointlessly annoying.  Also I see some payments as "processing" until the note is all the way in grace period, which sucks a bit but I never had much luck selling a note as current before it hit grace anyway - too many people doing that crap and it was really well known.

All in all, it's shutting the barn door after the horse has bolted.

Time to see what happens if you post a note at a premium before it starts processing and then reprice it as the post date comes...

Edit: ok, tried that and the cancellation message is now "payment processing" and not "payment posted", so nevermind that workaround.

I dont see why this wouldnt work in theory?