Author Topic: when first payment is due  (Read 12839 times)

Fred93

  • Hero Member
  • *****
  • Posts: 2252
    • View Profile
when first payment is due
« on: March 10, 2014, 03:45:46 AM »
Seems like this should be obvious, but apparently it is not.

I would expect that the first payment should be due one month after the loan issues.  For my old notes, this is correct.  For some of my recent notes, it is also correct. 

But... for some recent notes, there seems to be about an EXTRA TWO WEEKS in there, ie something like 6 weeks from issue to first payment.  I've attached a capture showing a note that issued on 3/5/14 with first payment due 4/20/14.

Has this been going on for a long time?  Have I just been oblivious?  Is this for real, or a bug, or what?
« Last Edit: March 10, 2014, 03:47:28 AM by Fred93 »

Bohb Daishi

  • Sr. Member
  • ****
  • Posts: 481
  • I eat free lunches
    • View Profile
Re: when first payment is due
« Reply #1 on: March 10, 2014, 04:04:05 AM »
It is possible that Lending Club now allows borrowers to choose their payment due date when the loan issues.
There are three ways to make a living in this business: be first, be smarter, or cheat.

cnmor54

  • Full Member
  • ***
  • Posts: 153
    • View Profile
Re: when first payment is due
« Reply #2 on: March 10, 2014, 11:19:17 AM »
I have had quite a few of those lately and what is really irritating is the fact that I don't collect any interest for those 10 days or 2 weeks.

core

  • Hero Member
  • *****
  • Posts: 1790
  • Your loss is my gain
    • View Profile
Re: when first payment is due
« Reply #3 on: March 10, 2014, 11:25:28 AM »
Where does it say in the investor agreement that LENDING CLUB doesn't have to pay the INVESTOR interest if the borrower wants a different due date?  Lending Club, you can do whatever you want with payment dates, but you have an interest obligation to me and *I* didn't waive any interest.

cnmor54

  • Full Member
  • ***
  • Posts: 153
    • View Profile
Re: when first payment is due
« Reply #4 on: March 10, 2014, 12:57:23 PM »
Here's a perfect example
https://www.lendingclub.com/account/loanPerf.action?loan_id=12487507&order_id=18273399&note_id=41704960

issued date: 3/4/14
1st pymt: 4/16/14
accrued interest : zero, zip, nada

BruiserB

  • Sr. Member
  • ****
  • Posts: 425
    • View Profile
Re: when first payment is due
« Reply #5 on: March 10, 2014, 09:22:29 PM »
I've noticed a few of these as well.  I agree that all interest should be paid.  Also I would rather see LC allow this only after the borrower has made a few payments on time.  This just seems like it gives the borrower more time to disappear if they intend to take the money and run.  If LC doesn't want to force the borrower to change the amount of their first payment, they should just add the accrued interest to the principal and adjust for it at the end of the loan....have the borrower make an additional partial payment at the end.

core

  • Hero Member
  • *****
  • Posts: 1790
  • Your loss is my gain
    • View Profile
Re: when first payment is due
« Reply #6 on: March 11, 2014, 02:23:01 AM »
I've noticed a few of these as well.  I agree that all interest should be paid.

Why is this even a topic of discussion?  LC contractually owes us interest.  There is no opinion, no discussion; end of story.  This is not open to discussion.  Except maybe by lawyers.  I don't see why we should have to argue to get what was already agreed to.

Fred93

  • Hero Member
  • *****
  • Posts: 2252
    • View Profile
Re: when first payment is due
« Reply #7 on: March 11, 2014, 01:53:42 PM »
I  got an answer from Lendingclub this morning
Quote
Thanks for your question.  Generally, the borrower's first payment is due 30 days after issuance.  It looks like the borrower in your example requested a different payment date, which can be done although it is not the norm. Since interest accrues monthly on the borrower's loan, the interest for this payment does not change.  We are working on a way to calculate interest daily but currently the system is set up to calculate monthly interest.

Fred

  • Hero Member
  • *****
  • Posts: 1421
    • View Profile
Re: when first payment is due
« Reply #8 on: March 11, 2014, 02:34:33 PM »
I  got an answer from Lendingclub this morning
Quote
Thanks for your question.  Generally, the borrower's first payment is due 30 days after issuance.  It looks like the borrower in your example requested a different payment date, which can be done although it is not the norm. Since interest accrues monthly on the borrower's loan, the interest for this payment does not change.  We are working on a way to calculate interest daily but currently the system is set up to calculate monthly interest.

Interests accrue monthly?  Who does that nowadays?

It is much more important to run accrual calculation daily than to keep amount precision to the 10-th digit.

Rob L

  • Hero Member
  • *****
  • Posts: 2137
    • View Profile
Re: when first payment is due
« Reply #9 on: March 11, 2014, 07:18:01 PM »
+1.
I know we're talking about nickels and dimes literally, but that answer from LC is, well, .... ????
 I dunow, pick a word; incredible, bizarre, can't  think of anything else.
Maybe before the PC was introduced (1981 wasn't it?) interest was accrued monthly.
I thought of another word; unbelievable.

They really said that!

rawraw

  • Hero Member
  • *****
  • Posts: 2795
    • View Profile
Re: when first payment is due
« Reply #10 on: March 11, 2014, 08:28:21 PM »
One of you Fred's needs an avatar. 

core

  • Hero Member
  • *****
  • Posts: 1790
  • Your loss is my gain
    • View Profile
Re: when first payment is due
« Reply #11 on: March 12, 2014, 08:24:44 AM »
How can they say with a straight face that interest accrues monthly when the accrued interest total changes daily?

Keltset

  • Full Member
  • ***
  • Posts: 176
    • View Profile
Re: when first payment is due
« Reply #12 on: March 12, 2014, 10:32:21 AM »
How can they say with a straight face that interest accrues monthly when the accrued interest total changes daily?

Ha! I was thinking the same thing. *palmface*

Fred

  • Hero Member
  • *****
  • Posts: 1421
    • View Profile
Re: when first payment is due
« Reply #13 on: March 12, 2014, 10:54:17 AM »
If you go to the "My Account" on LC Folio page: https://www.lendingclub.com/foliofn/tradingAccount.action, and hover over the question mark below the "Accrued Interest" heading, you'll find:



"Interest accrues daily."

core

  • Hero Member
  • *****
  • Posts: 1790
  • Your loss is my gain
    • View Profile
Re: when first payment is due
« Reply #14 on: March 12, 2014, 11:23:15 AM »
I think this is just another case of a Lending Club representative making things up in order to answer a question.  Nothing deeper than that.  This happens all the time; I have lost count.  Any statement made by a lone account rep should be dismissed as a fairy tale.