Author Topic: Understanding the due date and grace period - and Processing  (Read 9943 times)

howler99

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Understanding the due date and grace period - and Processing
« on: September 08, 2012, 10:13:22 AM »
I'm having a hard time understanding Lending Club's due date and when a note goes into the Grace Period. For instance today (9/8) I have a loan due on 9/1 that LC shows as current and payment status Processing. If I check, previous payments for the loan, the always show completed by the 6th or 7th.  I know this is a bank holiday week, but still this seems like a while.

Also, I should note that I purchased a note off the trading platform that said Current and payment processing. As soon as the transaction cleared my account, the note showed up as in Grace Period - and I believe "Payment Failed".

Are there any hard and fast rules on determining when a payment has been made even when the status is "Processing" and when does a note really go into Grace Period status?

Thanks in advance for any info.

Peter

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Re: Understanding the due date and grace period - and Processing
« Reply #1 on: September 11, 2012, 01:02:00 PM »
I'm having a hard time understanding Lending Club's due date and when a note goes into the Grace Period. For instance today (9/8) I have a loan due on 9/1 that LC shows as current and payment status Processing. If I check, previous payments for the loan, the always show completed by the 6th or 7th.  I know this is a bank holiday week, but still this seems like a while.

Also, I should note that I purchased a note off the trading platform that said Current and payment processing. As soon as the transaction cleared my account, the note showed up as in Grace Period - and I believe "Payment Failed".

Are there any hard and fast rules on determining when a payment has been made even when the status is "Processing" and when does a note really go into Grace Period status?

Thanks in advance for any info.

There was a discussion on the blog last week about this very topic. Read the comments starting here and you will learn a great deal:
http://www.lendacademy.com/peer_lending/do-you-have-questions-for-lending-club-and-prosper/#comment-6023
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thezinfan

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Re: Understanding the due date and grace period - and Processing
« Reply #2 on: September 12, 2012, 02:30:28 PM »
During much of that discussion, I was thinking about asking everyone to move to the forum. The comments on articles are interesting, but they are tough to find for a newbie showing up a few months after you publish the article.

Peter

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Re: Understanding the due date and grace period - and Processing
« Reply #3 on: September 12, 2012, 04:22:50 PM »
During much of that discussion, I was thinking about asking everyone to move to the forum. The comments on articles are interesting, but they are tough to find for a newbie showing up a few months after you publish the article.

I also wish that people would move some of these conversations to the forum because often the topics end up being very different from the post itself. I think I will give everyone a reminder about the Forum again soon.
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howler99

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Re: Understanding the due date and grace period - and Processing
« Reply #4 on: September 15, 2012, 11:42:43 AM »
That is a good discussion. Although, I'm not sure how the topic of reassembling a .45 got in there.... ;)

Is it really true that if you buy a note with a payment processing status on Foliofn and a payment is received, it goes to cancelled?

Thanks.

thezinfan

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Re: Understanding the due date and grace period - and Processing
« Reply #5 on: September 18, 2012, 11:05:30 AM »
Howler,

I'm not sure that it is that straight forward. I believe that if you buy a loan, and a payment comes in before the purchase settles, then it cancels. Right now (early AM 9/18/2012), loans with the following payment dates are still showing as processing (9/11-although these are stragglers, 9/12,9/13,9/14,9/15,9/16. 9/17). But if you bought a 9/17 loan this morning, the purchase could close by this afternoon. But the payment for it probably won't show up for 2-4 more days. In that case, I don't think the purchase cancels. The notes you have to be worried about buying are the ones that are about to flip from CURRENT to In Grace Period (IGP). Again, for today at 1pm Pacific, loans with payment date 9/11 will flip from CURRENT to IGP. I would be careful when buying those.

Caveat - I have never bought a note on folio, I have only sold notes, so it's harder for me to discern exactly what happens on a cancelled BUY.


FrankieC

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Re: Understanding the due date and grace period - and Processing
« Reply #6 on: October 18, 2012, 10:53:14 AM »
I also wish that people would move some of these conversations to the forum because often the topics end up being very different from the post itself. I think I will give everyone a reminder about the Forum again soon.

Yes, I've noticed two related phenomenons:
- this forum sees very little activity
- some of your posts see vast amounts of comments, turning into general discussion

I think I've seen other news/blog sites address this by:
- for each new post, start a new thread in the forum
- in each new post, instead of having a comments system, link to the new forum thread

Forums are better for discussion anyway, and this drives traffic / reader attention to the forum.

Peter

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Re: Understanding the due date and grace period - and Processing
« Reply #7 on: October 18, 2012, 11:40:41 AM »
Thanks Frankie. I know the forum gets very little traffic and I have been mulling ways to improve that. But I am not sure if forcing people on to the forum to make comments is the answer. I will try a few things in coming days to see if I can get some better discussion happening. I appreciate your thoughts.
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rajuabju

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Re: Understanding the due date and grace period - and Processing
« Reply #8 on: October 19, 2012, 04:14:21 PM »
Peter, I think absolutely you need to consider "forcing" everyone onto the forums.

There must be a way (addon module perhaps) that automatically posts each topic you have in your blog into a forum post, and then auto-redirects all comments into the forums.

If not, then Perhaps you need to disable the commenting feature on the blog, and instead link each blog post to a new discussion thread.

Peter

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Re: Understanding the due date and grace period - and Processing
« Reply #9 on: October 19, 2012, 07:34:15 PM »
The trouble with doing that is I feel the number of comments, particularly from new readers would plummet. Because you have to register before you can make a comment people may be more reluctant to go through that process. And I highly value the comments I receive - I have actually learned more from muy blog comments than from any other source.

I am going to keep promoting the forum on Twitter and also mentioning it on the blog regularly because I definitely want to get more people on here.
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SeanMcD

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Re: Understanding the due date and grace period - and Processing
« Reply #10 on: October 23, 2012, 03:25:44 PM »
Have you considered adding a weekly "Best Forum Discussions" post to your blog, similar to the Lending News Roundup you do on Saturdays?  A link to the thread along with a short description of the discussion would make a good teaser to encourage people to register and see what's going on.

Peter

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Re: Understanding the due date and grace period - and Processing
« Reply #11 on: October 23, 2012, 06:22:03 PM »
That is a great idea Sean and one that I hadn't considered. I am going to start this Saturday and add a section for interesting forum discussions to my Saturday roundup. Thanks!
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rajuabju

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Re: Understanding the due date and grace period - and Processing
« Reply #12 on: October 24, 2012, 10:52:05 AM »
Ok, I can get where you're coming from Peter about forcing people to register.

I also like the "weekly best forum discussion" idea.

How about for each post in the blog, you link to a new forum topic (or at least, each "major" post). So people can both comment on it via the blog, or have a more indepth conversation in the forums.

Peter

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Re: Understanding the due date and grace period - and Processing
« Reply #13 on: October 24, 2012, 11:39:43 AM »
Rajuabju,

Thanks for your interest. I don't want to start a forum topic for every post but I am going to try and bring the forum into my blog posts on a more regular basis.
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