Author Topic: LC is looking more and more shady to me.  (Read 15176 times)

Fee

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Re: LC is looking more and more shady to me.
« Reply #15 on: December 29, 2014, 11:15:11 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.

I will try calling them again tomorrow if I can get out of work early enough. I feel like I have to do their job to protect my investment.

hoggy1

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Re: LC is looking more and more shady to me.
« Reply #16 on: December 30, 2014, 08:37:52 AM »
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.
You're not going to get anywhere.
http://www.lendacademy.com/forum/index.php?topic=2903.msg26433#msg26433
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.

I will try calling them again tomorrow if I can get out of work early enough. I feel like I have to do their job to protect my investment.

You're not going to get anywhere. See this thread (and other I have reported)
http://www.lendacademy.com/forum/index.php?topic=2903.msg26433#msg26433

Status, payment_plans, trend, almost any field you look at closely is faulty.

It's not possible to embarrass them with your questions or pointing out errors.
Steve

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Re: LC is looking more and more shady to me.
« Reply #17 on: December 30, 2014, 09:41:16 AM »
Again though, you won't lose more than 5 days or so of your 15 day window to sell, and since you only need about a day to realistically dump your IGP note before it becomes late, and a day or two for than sale to process, you've got, a whole week basically to sell even in a particularly egregious case of foot dragging by LC. Determining whether or not something is IGP or not is not a frictionless perfect system, I would imagine. There are, after all, entire industries devoted to figuring out what's going on with delinquents.   

Fee

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Re: LC is looking more and more shady to me.
« Reply #18 on: December 30, 2014, 11:36:30 AM »
Again though, you won't lose more than 5 days or so of your 15 day window to sell, and since you only need about a day to realistically dump your IGP note before it becomes late, and a day or two for than sale to process, you've got, a whole week basically to sell even in a particularly egregious case of foot dragging by LC. Determining whether or not something is IGP or not is not a frictionless perfect system, I would imagine. There are, after all, entire industries devoted to figuring out what's going on with delinquents.

Have you been following this thread? I have notes with a due date of 12/13 and 12/16 that are still unavailable for sale. I think your 5 day count is a little off.

This has nothing to do with trying to figure out the mindset of the borrower and if they will pay. It is about LC following their own policies for updating the status of notes. A business day is a business day and a payment has either been made or it has not. I'm afraid that this is a much bigger problem relating to LCs lack of automation which will only get worse with growth.

hoggy1

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Re: LC is looking more and more shady to me.
« Reply #19 on: December 30, 2014, 11:53:57 AM »
Again though, you won't lose more than 5 days or so of your 15 day window to sell, and since you only need about a day to realistically dump your IGP note before it becomes late, and a day or two for than sale to process, you've got, a whole week basically to sell even in a particularly egregious case of foot dragging by LC. Determining whether or not something is IGP or not is not a frictionless perfect system, I would imagine. There are, after all, entire industries devoted to figuring out what's going on with delinquents.

Have you been following this thread? I have notes with a due date of 12/13 and 12/16 that are still unavailable for sale. I think your 5 day count is a little off.

This has nothing to do with trying to figure out the mindset of the borrower and if they will pay. It is about LC following their own policies for updating the status of notes. A business day is a business day and a payment has either been made or it has not. I'm afraid that this is a much bigger problem relating to LCs lack of automation which will only get worse with growth.

Have you read this thread??? http://www.lendacademy.com/forum/index.php?topic=2903.msg26433#msg26433

Let me share some advice that rawraw shared with me back when I was new.

Take a deep breath. It'll be okay!
« Last Edit: December 30, 2014, 12:01:18 PM by hoggy1 »
Steve

Fee

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Re: LC is looking more and more shady to me.
« Reply #20 on: December 30, 2014, 01:40:11 PM »
Again though, you won't lose more than 5 days or so of your 15 day window to sell, and since you only need about a day to realistically dump your IGP note before it becomes late, and a day or two for than sale to process, you've got, a whole week basically to sell even in a particularly egregious case of foot dragging by LC. Determining whether or not something is IGP or not is not a frictionless perfect system, I would imagine. There are, after all, entire industries devoted to figuring out what's going on with delinquents.

Have you been following this thread? I have notes with a due date of 12/13 and 12/16 that are still unavailable for sale. I think your 5 day count is a little off.

This has nothing to do with trying to figure out the mindset of the borrower and if they will pay. It is about LC following their own policies for updating the status of notes. A business day is a business day and a payment has either been made or it has not. I'm afraid that this is a much bigger problem relating to LCs lack of automation which will only get worse with growth.

Have you read this thread??? http://www.lendacademy.com/forum/index.php?topic=2903.msg26433#msg26433

Let me share some advice that rawraw shared with me back when I was new.

Take a deep breath. It'll be okay!

Thanks for the link. It really doesn't make me feel any better though. I'm sure that the growing pains here at LC will cause things to get worse before they get better. I have started slowly liquidating my account but might return if things improve.

Fee

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Re: LC is looking more and more shady to me.
« Reply #21 on: December 30, 2014, 01:46:29 PM »
One of the notes just went late and I never had a chance to sell it while it was in the grace period.

Two other notes have an earlier due date but still show in grace period.

Is there a method to their madness or are they just wingin it?
« Last Edit: December 30, 2014, 02:14:37 PM by Fee »

rawraw

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Re: LC is looking more and more shady to me.
« Reply #22 on: December 30, 2014, 05:54:58 PM »
I'm trying not to be rude, but I think you may have unrealistic expectations for a consumer portfolio.  You seem to mentally be comparing the information here to a stock and that is not a fair comparison at all.  All your errors could likely be fixed, but it would cost more man hours and employees to do the manual "updates to logs" and other things.  Most wouldn't want to pay a higher servicing fee to pay for that, perhaps you would.

Your investment amount should be relatively small as a percentage of the total,  but you are treating it like you have very concentrated holdings.  This is homogenous consumer credit and such a micro focus really doesn't work well.  I would expect your reaction for large commercial deals or other extensions of credit.  But $25 exposures?  C'mon man. . .

It is your choice to liquidate your account if you are uncomfortable and I think that is the best thing for you if you can't change that mindset.  But I think you have some pretty hefty expectation -- that doesn't mean they aren't important and LC shouldn't fix them, but you are operating decidedly binary in a very grey world. 
« Last Edit: December 30, 2014, 05:56:40 PM by rawraw »

Fee

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Re: LC is looking more and more shady to me.
« Reply #23 on: December 30, 2014, 06:23:04 PM »
I'm trying not to be rude, but I think you may have unrealistic expectations for a consumer portfolio.  You seem to mentally be comparing the information here to a stock and that is not a fair comparison at all.  All your errors could likely be fixed, but it would cost more man hours and employees to do the manual "updates to logs" and other things.  Most wouldn't want to pay a higher servicing fee to pay for that, perhaps you would.

Your investment amount should be relatively small as a percentage of the total,  but you are treating it like you have very concentrated holdings.  This is homogenous consumer credit and such a micro focus really doesn't work well.  I would expect your reaction for large commercial deals or other extensions of credit.  But $25 exposures?  C'mon man. . .

It is your choice to liquidate your account if you are uncomfortable and I think that is the best thing for you if you can't change that mindset.  But I think you have some pretty hefty expectation -- that doesn't mean they aren't important and LC shouldn't fix them, but you are operating decidedly binary in a very grey world.

I have 2 notes in grace period with a due date of 12/13 and 1 note 16-30 days late with a due date of 12/14. How is this possible? For me, it's not about the small amount of money invested per note. It's about the platform's competence as a whole. All of these little errors or bugs will surely scale up with growth. I have caught several errors just within my small number of notes without even looking for them. How many more exist?

I appreciate everyone's input. At this time, LC is just not for me. Good luck.


BruiserB

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LC is looking more and more shady to me.
« Reply #24 on: December 30, 2014, 08:46:24 PM »

I'm trying not to be rude, but I think you may have unrealistic expectations for a consumer portfolio.  You seem to mentally be comparing the information here to a stock and that is not a fair comparison at all.  All your errors could likely be fixed, but it would cost more man hours and employees to do the manual "updates to logs" and other things.  Most wouldn't want to pay a higher servicing fee to pay for that, perhaps you would.

Your investment amount should be relatively small as a percentage of the total,  but you are treating it like you have very concentrated holdings.  This is homogenous consumer credit and such a micro focus really doesn't work well.  I would expect your reaction for large commercial deals or other extensions of credit.  But $25 exposures?  C'mon man. . .

It is your choice to liquidate your account if you are uncomfortable and I think that is the best thing for you if you can't change that mindset.  But I think you have some pretty hefty expectation -- that doesn't mean they aren't important and LC shouldn't fix them, but you are operating decidedly binary in a very grey world.

I have 2 notes in grace period with a due date of 12/13 and 1 note 16-30 days late with a due date of 12/14. How is this possible? For me, it's not about the small amount of money invested per note. It's about the platform's competence as a whole. All of these little errors or bugs will surely scale up with growth. I have caught several errors just within my small number of notes without even looking for them. How many more exist?

I appreciate everyone's input. At this time, LC is just not for me. Good luck.


So you have 3 notes with small problems......how many total notes do you own?  I own a few thousand notes and gave up looking at them on the micro level.  When I look at the big picture, I see that I'm getting 11% real return on my money, net of any defaults and other minor issues. I've been investing for 3 years so I've been around a while  I don't know where else I can get this return reliably and I know this can change if we hit another recession, etc., but for me the minor issues aren't worth giving up the return I'm making.




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Re: LC is looking more and more shady to me.
« Reply #25 on: December 30, 2014, 11:28:04 PM »
Very well said Bruiser,

Consistent returns in high single and low double digits is not easily replicated given the cashflow and monthly payback. No other asset class comes close.

rawraw

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Re: LC is looking more and more shady to me.
« Reply #26 on: December 31, 2014, 10:43:27 AM »
I'm trying not to be rude, but I think you may have unrealistic expectations for a consumer portfolio.  You seem to mentally be comparing the information here to a stock and that is not a fair comparison at all.  All your errors could likely be fixed, but it would cost more man hours and employees to do the manual "updates to logs" and other things.  Most wouldn't want to pay a higher servicing fee to pay for that, perhaps you would.

Your investment amount should be relatively small as a percentage of the total,  but you are treating it like you have very concentrated holdings.  This is homogenous consumer credit and such a micro focus really doesn't work well.  I would expect your reaction for large commercial deals or other extensions of credit.  But $25 exposures?  C'mon man. . .

It is your choice to liquidate your account if you are uncomfortable and I think that is the best thing for you if you can't change that mindset.  But I think you have some pretty hefty expectation -- that doesn't mean they aren't important and LC shouldn't fix them, but you are operating decidedly binary in a very grey world.

I have 2 notes in grace period with a due date of 12/13 and 1 note 16-30 days late with a due date of 12/14. How is this possible? For me, it's not about the small amount of money invested per note. It's about the platform's competence as a whole. All of these little errors or bugs will surely scale up with growth. I have caught several errors just within my small number of notes without even looking for them. How many more exist?

I appreciate everyone's input. At this time, LC is just not for me. Good luck.
If anything, the bugs have been decreasing with growth.  But good luck

MathGuy

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Re: LC is looking more and more shady to me.
« Reply #27 on: December 31, 2014, 03:06:17 PM »
The log is provided as a courtesy to investors and if LC realizes that it creates too much problems they will terminate it like they terminated the option to ask borrowers questions.  I think it is a matter of time before LC will terminate the log description especially now that they are publicly traded. BTW prosper does not provide such a log.

Randawl

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Re: LC is looking more and more shady to me.
« Reply #28 on: December 31, 2014, 04:58:27 PM »
The log is provided as a courtesy to investors and if LC realizes that it creates too much problems they will terminate it like they terminated the option to ask borrowers questions.  I think it is a matter of time before LC will terminate the log description especially now that they are publicly traded. BTW prosper does not provide such a log.

No more collection log, and years down the road no more FICO trend. And perhaps no more Folio in the long future, but that's doubtful in my opinion.

rawraw

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Re: LC is looking more and more shady to me.
« Reply #29 on: December 31, 2014, 05:18:27 PM »
The log is provided as a courtesy to investors and if LC realizes that it creates too much problems they will terminate it like they terminated the option to ask borrowers questions.  I think it is a matter of time before LC will terminate the log description especially now that they are publicly traded. BTW prosper does not provide such a log.

No more collection log, and years down the road no more FICO trend. And perhaps no more Folio in the long future, but that's doubtful in my opinion.
FICO trend is very material IMO where questions and logs are questionable at best.  I'd be surprised if they suspended it, but you never know