Author Topic: Service Fee Rebate?  (Read 4566 times)

brec

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Service Fee Rebate?
« on: December 19, 2014, 09:53:01 PM »
In this old thread there is mention of a Service Fee Rebate. I haven't seen that mentioned elsewhere, including the Prospectus. Is it historical only?

yojoakak

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Re: Service Fee Rebate?
« Reply #1 on: December 20, 2014, 01:06:00 AM »
I think it's still a thing. For example, here's an 11 cent payment that doesn't have a service fee and doesn't match up with the payment day in the Payment History. My calculation had it more like 27 cents though.

https://www.lendingclub.com/account/loanPerf.action?loan_id=444216&order_id=2348060&note_id=694541
« Last Edit: December 20, 2014, 01:52:03 AM by yojoakak »

brec

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Re: Service Fee Rebate?
« Reply #2 on: December 20, 2014, 09:43:10 AM »
I think it's still a thing. For example, here's an 11 cent payment that doesn't have a service fee and doesn't match up with the payment day in the Payment History. My calculation had it more like 27 cents though.

https://www.lendingclub.com/account/loanPerf.action?loan_id=444216&order_id=2348060&note_id=694541

Does all this have to do with some attempt at fairness in how the fees are affected by rounding errors and (in some cases) by a $0.01 minimum? And I suppose that whatever the policy is isn't written down anywhere for us to see?

Diving into the thicket: I notice in the loan linked to that fees on $0.34 payments were all ($0.01) through 2/3/14, after which they became ($0.00). Is there an hypothesis as to why that changed? And then the relatively humongous fee of ($0.51) on the $2.96 payment of 12/4/14?

Is your calculation ("more like 27 cents") based on trying to guess what they're doing, or on something more concrete?

Edit: after posting, I noticed that you just posted anew on a thread a few months old...
http://www.lendacademy.com/forum/index.php?topic=2743.0
...which sheds some more light. My summary: LC is trying to do the right thing w/r rounding, but exactly how they're doing it is left for us to infer.
« Last Edit: December 20, 2014, 09:48:59 AM by brec »

yojoakak

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Re: Service Fee Rebate?
« Reply #3 on: December 20, 2014, 10:52:21 AM »
And I suppose that whatever the policy is isn't written down anywhere for us to see?
There's lots that isn't written down, leaving us to guess, up to and including really basic stuff like how LendingClub calculates a months worth of interest. http://www.lendacademy.com/forum/index.php?topic=595.0

Quote
Diving into the thicket: I notice in the loan linked to that fees on $0.34 payments were all ($0.01) through 2/3/14, after which they became ($0.00). Is there an hypothesis as to why that changed? And then the relatively humongous fee of ($0.51) on the $2.96 payment of 12/4/14?
Yeah, that ones pretty weird. The Investor Fees column is relatively new and I hadn't paid much attention to it before. A lot of them are weird.


hoggy1

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Re: Service Fee Rebate?
« Reply #4 on: December 20, 2014, 11:11:58 AM »
rounding errors and (in some cases) by a $0.01 minimum?
Brec, Let your mouse hover over the $0.01 and you will see the calculations are done to about 10 decimal places.

See current topic http://www.lendacademy.com/forum/index.php?topic=2743.0;topicseen
« Last Edit: December 20, 2014, 11:13:52 AM by hoggy1 »
Steve

brec

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Re: Service Fee Rebate?
« Reply #5 on: December 20, 2014, 11:25:25 AM »
rounding errors and (in some cases) by a $0.01 minimum?
Brec, Let your mouse hover over the $0.01 and you will see the calculations are done to about 10 decimal places.

See current topic http://www.lendacademy.com/forum/index.php?topic=2743.0;topicseen

I'm not seeing that on the cited page...
https://www.lendingclub.com/account/loanPerf.action?loan_id=444216&order_id=2348060&note_id=694541
...when I hover the ($0.01)s I see "$0.0100000000" for each.

yojoakak

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Re: Service Fee Rebate?
« Reply #6 on: December 20, 2014, 11:28:21 AM »
I looked through my Account Activity. The $0.51 is actually 2 Collection Fees rolled up into one payment. Why they can't just have a separate line in the Payment History for payments that happen on different days I don't think I will ever understand.

david450

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Re: Service Fee Rebate?
« Reply #7 on: December 22, 2014, 05:57:11 PM »
I have been told by LC that prior to March 2014 interest and principle payments were rounded down to whole cents.
The fractional cents where held in a "borrower-bucket" (somewhere) until loan was paid off and then distributed to the
then current investors  (although this might be up to a month later).

so any loan that began before this date should would be involved.

gottodo1

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Re: Service Fee Rebate?
« Reply #8 on: December 28, 2014, 02:06:04 AM »
What about after that date?

BruiserB

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Service Fee Rebate?
« Reply #9 on: December 28, 2014, 06:14:56 PM »

What about after that date?

Since that date they have been calculating and charging fees out to 10 decimal places. Even though you may see a fee of 0.01 or 0.02 for each payment you receive, you are actually being charged an amount calculated much more finely. You can hover your mouse over the fee shown and see the actual amount. Since that date your total fees should come very close to 1% of your payments received.


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