Author Topic: LC is looking more and more shady to me.  (Read 15177 times)

Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
LC is looking more and more shady to me.
« on: December 27, 2014, 03:38:59 PM »
I have been noticing several discrepancies involving the status of notes, collection log, and the ability to sell notes on Folio.

I had a current note that had a due date of 12/20. Why was there a collection log entry saying that the borrower promised to pay on 12/15? Another note said current but was past the due date of 12/20. I sent an email to LC and within minutes the status of both notes were changed to IGP. Other notes have been late with no collection log entries whatsoever.

I had listed one of the IGP notes on Folio as a current note. If I wouldn't have contacted LC, I believe that this note would still be listed there as current.

I am worried that with an influx of new borrowers and investors that their system will only get worse. I was considering bringing more money in especially to void the account maintenance fee, but am now thinking of liquidating my account all together. I will fight LC if they try and charge me the account maintenance fee considering the failures of their platform.

Have any of you been seeing things like this?



Fred93

  • Hero Member
  • *****
  • Posts: 2252
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #1 on: December 27, 2014, 04:03:07 PM »
The notes are entered by humans.  Lots of humans.  There is therefore some sloppiness.

Why are you obsessing?

Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #2 on: December 27, 2014, 04:09:04 PM »
The notes are entered by humans.  Lots of humans.  There is therefore some sloppiness.

Why are you obsessing?

I feel that my account represents a small sample size. If I am seeing this many errors, how many more are out there? These errors control which notes can be listed on Folio as well. This can have big implications in investment strategy and therefore overall returns.

I have never experienced this magnitude of errors using any other trading exchange and I don't believe they can continue on in such a manner. I can see the lawsuits piling up now that they are publicly traded.

Maybe they need to hire more humans.

Fred93

  • Hero Member
  • *****
  • Posts: 2252
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #3 on: December 27, 2014, 04:26:23 PM »
I can see the lawsuits piling up now that they are publicly traded.

 ;D ;D ;D

The log is just scribbles like the notes you took in chemistry class.  Scribbles by humans.  They do not affect your ability to trade or do anything else. 

So how many notes did you actually find that had the wrong status in the computer, thus preventing you from trading or whatever?  One?  Two?  "Big" lawsuits coming for one or two $25 notes listed in the wrong status for a few days.


Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #4 on: December 27, 2014, 04:33:00 PM »
I can see the lawsuits piling up now that they are publicly traded.


 ;D ;D ;D

The log is just scribbles like the notes you took in chemistry class.  Scribbles by humans.  They do not affect your ability to trade or do anything else. 

So how many notes did you actually find that had the wrong status in the computer, thus preventing you from trading or whatever?  One?  Two?  "Big" lawsuits coming for one or two $25 notes listed in the wrong status for a few days.

This morning I sent an email about 2 of my notes. Within the hour 3 were changed from current to IGP. This is not just a scribble as you put it. It changed the note status from current to IGP and stopped me from listing them for sale on Folio. It seems that my email triggered the updates. This is concerning because updates should be implemented either in real time or at specific times during business hours not whenever a squeaky wheel sends an email. I just can't see regulators allowing this type of operation for long now that it has a brighter spotlight upon it.

yojoakak

  • Hero Member
  • *****
  • Posts: 763
    • View Profile
    • Check out my Greasemonkey/Tampermonkey script for LendingClub here
    • Email
Re: LC is looking more and more shady to me.
« Reply #5 on: December 27, 2014, 05:09:09 PM »
Seriously though, most days it seems like the database at LendingClub is held together with the proverbial spit and bailing wire.
« Last Edit: December 28, 2014, 12:13:16 PM by yojoakak »

Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #6 on: December 27, 2014, 05:13:22 PM »

This morning I sent an email about 2 of my notes. Within the hour 3 were changed from current to IGP. This is not just a scribble as you put it. It changed the note status from current to IGP and stopped me from listing them for sale on Folio. It seems that my email triggered the updates. This is concerning because updates should be implemented either in real time or at specific times during business hours not whenever a squeaky wheel sends an email. I just can't see regulators allowing this type of operation for long now that it has a brighter spotlight upon it.

There was a problem. You alerted them to the problem. They fixed it.

I would have thought that would make you happy.

There were 3 problems just this morning. I am happy that they fixed them but this is becoming a regular occurrence. I shouldn't have to send them an email every week with more problems that I have discovered. This is amateur and it bothers me that my money is tied up in it.

rawraw

  • Hero Member
  • *****
  • Posts: 2795
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #7 on: December 27, 2014, 08:41:14 PM »
Man LC attracts lots of Type As

gottodo1

  • Newbie
  • *
  • Posts: 37
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #8 on: December 28, 2014, 02:16:38 AM »
... I'm pretty Type A with my money as well, I'd say that's a good trait. If you're not Type A with your money lend me some and I'll type B you to C and add the I T H for ya :)

Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #9 on: December 29, 2014, 09:15:51 PM »
Lending Club has been sending me response emails asking for the very same information that I provided in my initial email to them. This is frustrating. I have multiple notes that have been in the grace period since 12/13 with no collection log entries made whatsoever. Are they contacting the borrower? It doesn't look like it but who knows.

I'll continue to document these issues as they arise. I doubt that I'm the only one seeing so many problems.

Unfolder

  • Full Member
  • ***
  • Posts: 118
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #10 on: December 29, 2014, 09:49:44 PM »
I always assumed the 3-4 day perceived cushion between Current and IGP was due to the possibility of ACH transfer delays or something. It doesn't matter though, unless you're trying to dump IGP notes before they become late...which...doesn't require more than a day :/

Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #11 on: December 29, 2014, 10:53:59 PM »
I always assumed the 3-4 day perceived cushion between Current and IGP was due to the possibility of ACH transfer delays or something. It doesn't matter though, unless you're trying to dump IGP notes before they become late...which...doesn't require more than a day :/

I now have 3 IGP notes with due dates of 12/16 or earlier that are still in Pending status which is not allowing me to sell them on Folio. Maybe I will have a chance to sell them once they are 16 days late.

Fred93

  • Hero Member
  • *****
  • Posts: 2252
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #12 on: December 29, 2014, 10:59:19 PM »
I now have 3 IGP notes with due dates of 12/16 or earlier that are still in Pending status which is not allowing me to sell them on Folio.

I don't know what determines when a loan comes out of "pending" status.  I don't think I've seen this written down anywhere.  Perhaps you could call LC and ask, then let us know.

Fee

  • Full Member
  • ***
  • Posts: 109
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #13 on: December 29, 2014, 11:04:16 PM »
I now have 3 IGP notes with due dates of 12/16 or earlier that are still in Pending status which is not allowing me to sell them on Folio.

I don't know what determines when a loan comes out of "pending" status.  I don't think I've seen this written down anywhere.  Perhaps you could call LC and ask, then let us know.

From the Folio website "This note cannot be sold at this time due to a processing payment. Once processing is completed (4 business days from the Note's due date) your note will be available to list for sale, unless the Note's status prevents a listing from occurring."

The phone reps repeat the same information and of course the collection log says nothing.

Fred93

  • Hero Member
  • *****
  • Posts: 2252
    • View Profile
Re: LC is looking more and more shady to me.
« Reply #14 on: December 29, 2014, 11:10:40 PM »
From the Folio website "This note cannot be sold at this time due to a processing payment. Once processing is completed (4 business days from the Note's due date) your note will be available to list for sale, unless the Note's status prevents a listing from occurring."

That obviously is not quite correct, as many loans show "pending" for longer than 5 days.  Perhaps something is missing from that explanation.

Quote
The phone reps repeat the same information and of course the collection log says nothing.

Did you point out specific examples of loans that show pending for much longer than 5 days?

You've gotta get past the first line reps reading scripted answers and get them to escalate the question.  Showing them specific loans which contradict the written words could help with that.