LC Investor Fees Rounding

[gottodo1]

Quick question, I used to know the answer to this but couldn't find it on the forum though I'm certain it's out there. For a loan if I receive a payment of $0.52 and LC takes a fee of 1% that should equal $0.0052 but it shows as rounding up to $0.01 so 0.01923% So if I doubled that investment so it payed $1.04 per period would they round the 0.0104 fee down to 1% or round it up to 2 percent? If it rounds down could I make that investiment pay 1.44 and still have it round down (Dreams). If they would round it up is that normal banking practice? my company's financial division rounds everything at 6 decimal points for their payments system and makes sure it evens out at the end of the year so we're within a penny (customer always loses that fraction of course). If they get 250 payments a month on my notes and charge 1.9% instead of 1%..  Probably should have thought about that 1% loss I'm taking before I dumped in all my new capital... oh well, to the future! Maybe B notes with a gauranteed 1% savings in fees would be great?

Just point this hopeless BBB user to the right thread, thanks guys!

[Fred93]

If you hover the mouse over a service fee, you will see that they display the true value, which is calculated to TEN decimal places.  My understanding is that they calculate using these true values.

[gottodo1]

Mine doesn't do that in google chrome... I'll. Try IE sometime

[Fred]

Chrome does display the 10-digit number on hover.

You can go to https://www.lendingclub.com/account/getLenderActivity.action to check.

Here is a snapshot:

[lascott]

Chrome does display the 10-digit number on hover.
You can go to https://www.lendingclub.com/account/getLenderActivity.action to check.
Here is a snapshot:

I thought my chrome worked until I saw your graphic then I realized my chrome cuts off one of the digits in the payment ... to the left of the decimal <grin>.  Very cool!  My hover works actually in chrome but I couldn't take a snapshot pict of it since I use my mouse to click the extension to take it. Perhaps an Alt-PrtScrn combo would work then a crop.

[gottodo1]

Thanks for the reply guys, it's probably just a setting that my IT has disabled in chrome for why it's not popping up but it works fine in IE.

[GS]

I'm a bit confused by what it actually means that they are calc'ing it to 10 decimal places.  When I first heard they were doing this, I assumed that they'd occasionally drop a penny off their fees, to keep the tally in check, but it's not happening. 

For example, I have a loan that charges 0.02 / month, every month, for the past 12 months.  I hover over, and I see the fee is actually 0.016679700 ... 

So, if I do that math month by month, looking at the total fees:

1)  0.0166797 actual, 0.02 charged
2)  0.0333594 actual, 0.04 charged
3)  0.0500391 actual, 0.06 charged
4)  0.0667188 actual, 0.08 charged
etc ...

From the looks of that, I'd expect about every 3rd payment to be 0.01 instead of 0.02, to keep the total cost inline, but it's not happening.   So, as I see it, they are still overcharging on fees on the month-by-month basis.  They used to handle this by making a lump sum fee reimbursement at the end of each loan.  Not sure what they doing now. 

[kbenson99]

From what I'm seeing, LC is correctly charging the service fees since they fixed the 1% service fee calculation a few months ago.  The payments and service fees shown (before hovering) on https://www.lendingclub.com/account/getLenderActivity.action and each individual note's performance page is a rounded "for display purposes" value.

From yesterday (low number of notes paying), my total payments were 34.9933559593.  Service fee was 0.3499335598.  Before payments posted, my cash value was 67.49, which is a rounded value (LC only shows cash to 2 digits).  I sold one note for 20.01 and incurred a .20 charge.  After payments posted, my cash value was 121.95.

Beginning cash (67.49) + traded note (20.01) - trading charge (.20) + payments (34.9933559593) - service fee (0.3499335598) = 121.9434223995.  This is less than my displayed cash value of 121.95, so it is safe surmise that my beginning cash was fractionally larger than 67.49, which LC doesn't display to us.  Looks correct, or am I missing something?

[Fred93]

I'm a bit confused by what it actually means that they are calc'ing it to 10 decimal places.  When I first heard they were doing this, I assumed that they'd occasionally drop a penny off their fees, to keep the tally in check, but it's not happening. 

I think it means that they don't round anything.  They display some numbers rounded, for your convenience.

[yojoakak]

I don't know how it works now, but the way it used to work was they would round it with a minimum of $0.01.

So a payment of:
$0.01 to $1.49 was $0.01
$1.50 to $2.49 was $0.02
$2.50 to $3.49 was $0.03
and so on.

Then after the loan gets Fully Paid they would figure out if they'd overcharged you and rebate you (or whoever owned the loan at the end) that amount after a week or so.

[DianaParr]

Hello, this might not be the place for this, where to find info on this in 2020? So many things have changed and it is annoying for me because I really wanted to change my career path and start investing in property. I thought that it will be a good idea, but things keep changing and I can't keep up. I even signed up to work with investors real estate to learn how to do it. They want to work with me because I have the funds and they can share the knowledge with me. It is not a bad idea I think, because it will be the fastest way to learn.

[JDII]

Hello, this might not be the place for this, where to find info on this in 2020? Thanks in advance.

I think that is  how it is still working. Or were you looking to get another type of question answered.