Author Topic: RIP Lendingclub Notes  (Read 3437 times)

Edward Reid

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Re: RIP Lendingclub Notes
« Reply #30 on: October 09, 2020, 03:56:05 PM »
I think they're talking about IRA custodian fees for account maintenance and transfer which can be substantial.

Ah, thanks.

.Ryan.

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Re: RIP Lendingclub Notes
« Reply #31 on: October 09, 2020, 10:42:30 PM »
I think they're talking about IRA custodian fees for account maintenance and transfer which can be substantial.

Spot on. Without folio, I am now forced to pay custodian fees ($100/year?) for the next 5 years while my account dwindles. My other option is to forfeit my notes.

jrr6415sun

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Re: RIP Lendingclub Notes
« Reply #32 on: October 09, 2020, 11:56:27 PM »
Yea...lol. I see the folio platform went away in August. Shows how much attention I’ve been paying to LC since I liquidated a bunch in Feb/Mar. I wouldn’t be surprised if folio shutting down was one of the nails in the coffin. The at least partial liquidity of the notes made the investment a bit more attractive.

Btw, welcome back, @core.


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wait what, why did they get rid of the trading platform? I didn't receive an email about it.

core

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Re: RIP Lendingclub Notes
« Reply #33 on: October 10, 2020, 12:02:39 AM »
wait what, why did they get rid of the trading platform? I didn't receive an email about it.

August, I believe.  I didn't receive an email about it either.  I only found out about it when I came here the other day to read about the end of the notes platform.

I'm honestly surprised this thread isn't getting more posts than it has.  Perhaps not many people even cared anymore?  I've seen quite a few posts alluding to being "blocked" from purchasing new notes.  Not sure what that's all about.

macroman7799

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Re: RIP Lendingclub Notes
« Reply #34 on: October 10, 2020, 12:06:48 PM »
I think LC has sunk in popularity quite a bit and of course not everyone uses this forum.

Mark

Fred93

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Re: RIP Lendingclub Notes
« Reply #35 on: October 10, 2020, 07:01:24 PM »
Its been clear to me for the last several years that LC had deprecated the retail investor.  We became a smaller and smaller fraction of their total business, and one that they were no longer trying to grow.  The smaller and smaller allocation to retail investors made that clear, as did getting rid of all the retail-investor oriented customer service people. 

This has been a long time coming.  No one who was observant should be surprised.

Clearly their plan was to slowly drive away the retail investors so they could eventually shut down the retail operation with minimum fuss.

Unfortunately, management was never honest about this.  That's a big negative mark for them in my book.

They have accomplished their goal, and have now just admitted it.

Rob L

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Re: RIP Lendingclub Notes
« Reply #36 on: October 10, 2020, 07:02:24 PM »
wait what, why did they get rid of the trading platform? I didn't receive an email about it.
I'm honestly surprised this thread isn't getting more posts than it has.
Nice to hear from you again and best wishes. Almost everyone has moved on.
With this I'm now even wondering how much longer Peter is going to keep the Investor Forum operating.

Rob L

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Re: RIP Lendingclub Notes
« Reply #37 on: October 10, 2020, 07:06:29 PM »
Its been clear to me for the last several years that LC had deprecated the retail investor.  We became a smaller and smaller fraction of their total business, and one that they were no longer trying to grow.  The smaller and smaller allocation to retail investors made that clear, as did getting rid of all the retail-investor oriented customer service people. 

This has been a long time coming.  No one who was observant should be surprised.

Clearly their plan was to slowly drive away the retail investors so they could eventually shut down the retail operation with minimum fuss.

Unfortunately, management was never honest about this.  That's a big negative mark for them in my book.

They have accomplished their goal, and have now just admitted it.

Ditto. A long time coming but the end has been obvious for years.


Lovinglifestyle

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Re: RIP Lendingclub Notes
« Reply #38 on: October 11, 2020, 04:58:54 PM »
" A long time coming but the end has been obvious for years." , from Rob L, well put--thank you.
If things had stayed the way they were at the beginning I would still be addicted. It was hard to give up.

Debt Free

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Re: RIP Lendingclub Notes
« Reply #39 on: October 11, 2020, 05:18:06 PM »
Here's another interesting question.  After the platform closes down for new investments and five years goes by, presuming 5% of these notes charge off, how long will your accounts remain active to collect any charge off recoveries?  Among my accounts, I have two that have drawn down to zero with no active notes.  I still receive recoveries each month of a couple dollars.

Will LC maintain our accounts for another 15 years or buy out the charged off debt from us?

storm

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Re: RIP Lendingclub Notes
« Reply #40 on: October 11, 2020, 05:31:59 PM »
Here's another interesting question.  After the platform closes down for new investments and five years goes by, presuming 5% of these notes charge off, how long will your accounts remain active to collect any charge off recoveries?  Among my accounts, I have two that have drawn down to zero with no active notes.  I still receive recoveries each month of a couple dollars.

Will LC maintain our accounts for another 15 years or buy out the charged off debt from us?

After 5 years of note issuance, LC has no obligation to give you any recovered amount:

Quote
In the event that LendingClub receives payments on a member loan corresponding to an investor’s Note after the final maturity date, such investor will not receive payments on that Note after the final maturity date.

Each three-year Note will mature on the initial maturity date, unless any principal or interest payments in respect of the corresponding member loan remain due and payable to LendingClub upon the initial maturity date, in which case, the maturity of the three-year Note will be automatically extended to the final maturity date (which in no event shall exceed five years from the initial maturity date). If there are any amounts under the corresponding member loan still due and owing to LendingClub on the final maturity date (for three-year or five-year Notes), LendingClub will have no further obligation to make payments on the related Notes, even if it receives payments on the corresponding member loan after the final maturity date.
« Last Edit: October 11, 2020, 05:44:08 PM by storm »

Rob L

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Re: RIP Lendingclub Notes
« Reply #41 on: October 11, 2020, 06:49:14 PM »
" A long time coming but the end has been obvious for years." , from Rob L, well put--thank you.
If things had stayed the way they were at the beginning I would still be addicted. It was hard to give up.
Another voice from the "better times". Best wishes to you. We had a really good thing and it went bad. :(
Didn't know how lucky I was to get in while the getting was good. I was late to the party starting in 2013.
I'm sure we both did very well but ultimately but had to leave the party when it was over.

It could have been worse; could have bought the stock at the IPO and still own it (a 96% loss to date).

BruiserB

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Re: RIP Lendingclub Notes
« Reply #42 on: October 12, 2020, 10:13:01 AM »
Apparently I did get a message about Folio shutting down.  It came in an August 6th email with the subject line "July 2020 Monthly Statement and an Update on Folio."

In it there was this:

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.

As always, please contact us with any questions at the email address below.

macroman7799

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Re: RIP Lendingclub Notes
« Reply #43 on: October 12, 2020, 09:36:01 PM »

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.


That sure lasted a long time!

kib

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Re: RIP Lendingclub Notes
« Reply #44 on: October 14, 2020, 05:00:33 PM »
I think they're talking about IRA custodian fees for account maintenance and transfer which can be substantial.

Spot on. Without folio, I am now forced to pay custodian fees ($100/year?) for the next 5 years while my account dwindles. My other option is to forfeit my notes.
If you have an open (non-ira) LC account, you can take a distribution in the amount of the open notes in your IRA and transfer those notes to the non-ira account.  Of course you'll have to accept any IRS consequences / penalties that come from making a distribution.   This is a third option beyond waiting out the years and fees or forfeiting the notes, but it's not a very good one.
« Last Edit: October 14, 2020, 05:59:51 PM by kib »