Author Topic: Folio ending August 28th.  (Read 989 times)

bkcarp00

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Folio ending August 28th.
« on: August 06, 2020, 07:18:44 PM »
Official email today Folio investing will be discontinued on August 28th. Very bad news for anyone that uses folio to buy/sale. I've sold off around ~160K over the last year to liquidate my account. so happy I was able to get out while I had the chance.

"An Update on Folio

As a Folio account holder, you know that historically Folio Investments, Inc. (Folio) has offered a secondary market for Notes, where individuals could buy and sell Notes to and from other investors. LendingClub was recently notified that Folio is being acquired by a financial institution and, as a result, the secondary market for Notes will be discontinued.

Please know that the closure of the secondary market will not affect the Note investments in your LendingClub account, and your LendingClub account will continue to be serviced as usual.

Should you wish to buy or sell Notes on the secondary market, please keep these key dates in mind:
August 26, 2020: The last day you will be able to list a Note for sale. Any remaining Note listings on the trading platform at the end of the day will expire or terminate. Any trades executed on August 26, 2020 will settle in accordance with standard settlement procedures on August 27, 2020.

August 28, 2020: Investor account(s) with Folio for trading Notes will be closed, after which you will be able to log in to view statements and legal agreements only.
While most investors consider Notes to be part of their buy-and-hold long-term investment strategy, we understand that the secondary market has provided a valuable option to those who needed it. We're disappointed in the decision and understand that investors who actively trade Notes will be disappointed too. Because the secondary market has always been offered by a third party, we unfortunately do not control its availability."

macroman7799

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Re: Folio ending August 28th.
« Reply #1 on: August 07, 2020, 09:40:37 PM »
Thanks, I just saw this today and was going to post it myself.

kib

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Re: Folio ending August 28th.
« Reply #2 on: August 08, 2020, 11:26:04 AM »
Ok.  My husband and I have an agreed on phrase for the moments when things go so toes-up you could laugh or cry or kill each other.  Now Is The Time For Laughing.  so .... ha ha ha.  Seriously, every time I think this investment can't be more of a disaster they find some new way to make it worse for the good hearted people funding this fiasco.  This is the last straw.  You win, whoever you are, take my notes, please, just get me out of this mess.  Of course since for whatever reason hardship notes can't be sold, even at a deep discount, and by the time they're no longer hardship notes the 2ndary market will be shut down, I'll be holding one of these mf'ers for another 19 months, just a cozy little placeholder to reinforce my fond memories and probably trigger another $100 in IRA fees ... thank you so much, LC.

... On the bright side, since I've spent about 15 minutes a day for the past 3 years monitoring notes so I don't get stuck with trash, there's absolutely no reason to keep checking in on the portfolio, as there's now nothing to do with a clunker but watch it go down in flames.   ::)
« Last Edit: August 08, 2020, 08:04:09 PM by kib »

storm

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Re: Folio ending August 28th.
« Reply #3 on: August 09, 2020, 12:41:14 AM »
I've spent the better part of this year slowly and strategically liquidating my remaining notes in my IRA before the annual fee hits me later this year. I'm down to just a handful of notes with terrible payment histories. I consider myself lucky. I feel sorry for anyone who wants out now.

rj2

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Re: Folio ending August 28th.
« Reply #4 on: August 09, 2020, 01:29:25 AM »
I've been liquidating as well, had sold everything with >12m left on it and was working on 9m to 11m. Lots of those are still "locked" and can't be sold so I guess I'm stuck dealing with LC for at least a year.

Is anyone doing anything other than liquidating at this point?

JDII

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Re: Folio ending August 28th.
« Reply #5 on: August 09, 2020, 02:23:11 PM »
Quote
Is anyone doing anything other than liquidating at this point?

I am adding to my account as fast as I can. 

kib

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Re: Folio ending August 28th.
« Reply #6 on: August 09, 2020, 04:40:23 PM »
You will probably do well, people such as myself are selling at a nice discount.  I'm just so over it, but good luck to you.

JDII

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Re: Folio ending August 28th.
« Reply #7 on: August 09, 2020, 06:09:22 PM »
Quote
You will probably do well, people such as myself are selling at a nice discount.  I'm just so over it, but good luck to you.

Assuming this was in response to my post. If not my apologies.

I've never gone into the secondary market. I'm buying new notes as quickly as I can.  I wish I could devote more resources to it. 


rawraw

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Re: Folio ending August 28th.
« Reply #8 on: August 09, 2020, 09:24:54 PM »
My account just recently got to the point where it rounds to zero.  LendingClub was a great ride,  but since I never used it in a tax advantaged account that spike in losses a few years back made it tax inefficient quicker than I expected.  Plus returns have come down a lot vs. the days where I could sell notes before they missed their payments :)  I miss my virtually risk free profits.  It was a fun ride!  The notes I bought during the LC scandal on the secondary market performed extremely well.  For those sticking around, this may be a similar situation - buy those severely distressed notes :)  If I didn't have prior commitments for my capital, I'd probably be funding up a small LC account for one last hurrah.

The portfolio I manage for my parents continues to do well.  But they've always been in the low grade notes.  I used to constantly warn some extreme people on this board about the risk they were taking with those high grade notes.  Several years later, most left because they complained about their returns and those charge offs  :-\  Who could have seen chasing yield ending badly?
« Last Edit: August 09, 2020, 09:28:17 PM by rawraw »

dr.everett

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Re: Folio ending August 28th.
« Reply #9 on: August 09, 2020, 11:17:08 PM »
So glad I got out when I did a few years ago- was always worried that this would come to pass and I would be "rushed" to get out. LC was good back then, but now there are many better things to invest in, that are less work, less headache at tax time. etc. I wish everyone well that continues to stay with LC. I still check the forum from time to time to see what's going on, are things better, etc. (And to see if the decision I made a few years ago is still the right decision.) So far that answer is still a Yes.

Good luck all.

AnilG

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Re: Folio ending August 28th.
« Reply #10 on: August 10, 2020, 03:42:07 AM »
It is disappointing to see secondary market going away. Recently, I was looking into stats for FOLIO usage by PeerCube users. I was surprised to see PeerCube users placed 1 million orders. Service had captured almost 100,000 settled buy and sell orders. Hopefully, loan buying on LC primary platform increases so that I can continue to keep PeerCube running. Keeping my fingers crossed.

I learnt a lot from running the service as well as interacting with users on the forum and PeerCube. And, it got me interested into trading on financial markets.
« Last Edit: August 10, 2020, 03:45:47 AM by AnilG »
---
Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com

rj2

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Re: Folio ending August 28th.
« Reply #11 on: August 12, 2020, 01:51:32 AM »
Folio closing creates an issue for me. I don't know how I can exit from  LC without paying that annual fee.

My next annual fee is not for nearly 10 months, so it's a long way off, but, with folio closing whatever is going to happen is going to happen THIS month.

I have listed every note that had a maturity date later than my next annual fee, and they have been selling pretty well. There's only two particularly stubborn notes left with poor payment histories, I'm sure eventually I'll discount them enough someone will buy them. I hope... in the next week. The rest of my notes will all mature before the fee.

EXCEPT FOR the "hardship" notes that I can't sell. There are only a couple of them with maturity dates after my annual fee--but if even ONE note is left? Then my account doesn't close and I'm going to have to pony up $100/year or whatever it is until that final notes pays off? I'll be paying $100/year for the privilege of holding what will be by then $5 or $10 note.

There has to be a way out.
« Last Edit: August 12, 2020, 01:55:18 AM by rj2 »

storm

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Re: Folio ending August 28th.
« Reply #12 on: August 12, 2020, 03:47:37 AM »
Folio closing creates an issue for me. I don't know how I can exit from  LC without paying that annual fee.

My next annual fee is not for nearly 10 months, so it's a long way off, but, with folio closing whatever is going to happen is going to happen THIS month.

I have listed every note that had a maturity date later than my next annual fee, and they have been selling pretty well. There's only two particularly stubborn notes left with poor payment histories, I'm sure eventually I'll discount them enough someone will buy them. I hope... in the next week. The rest of my notes will all mature before the fee.

EXCEPT FOR the "hardship" notes that I can't sell. There are only a couple of them with maturity dates after my annual fee--but if even ONE note is left? Then my account doesn't close and I'm going to have to pony up $100/year or whatever it is until that final notes pays off? I'll be paying $100/year for the privilege of holding what will be by then $5 or $10 note.

There has to be a way out.

I've been reading past comments from investors who have already made their exit. When you call to close your account, you can either forfeit your leftover notes to LC (along with the remaining principle and interest) or transfer them to a taxable LC account. If you transfer them from a traditional (pre-tax) IRA, the IRS will tax the fair market value as income plus a 10% penalty if you are younger than 59 1/2. Then hope those borrowers get their act together. I already have a taxable account I'm letting die off naturally, so that may be the way I go.

kib

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Re: Folio ending August 28th.
« Reply #13 on: August 19, 2020, 10:07:08 AM »
That's good to know, thank you.  How do you know when your fee is due?  I've never had to pay before, I'd like to give the duds as long as possible to pay off before having to take that IRS penalty (but still not pay the annual fee for what will probably be $50 in outstanding notes). 

It appears like LC is just not processing much of anything, I have several notes that were due for payment on 7/30 that are just sitting there "processing" for almost three weeks now; haven't been paid, haven't gone into grace.  Anyone else experiencing this?
« Last Edit: August 19, 2020, 10:10:56 AM by kib »

storm

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Re: Folio ending August 28th.
« Reply #14 on: August 19, 2020, 11:31:34 PM »
How do you know when your fee is due?  I've never had to pay before, I'd like to give the duds as long as possible to pay off before having to take that IRS penalty (but still not pay the annual fee for what will probably be $50 in outstanding notes).

It will be on the anniversary of when you opened your account. Lending Club emailed a reminder e-mail about 3 months in advance since my investment has fallen below $10k.