Author Topic: It looks like I bought a note that was already paid off.  (Read 11662 times)

Fee

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It looks like I bought a note that was already paid off.
« on: January 06, 2015, 03:11:26 PM »
I purchased a note from a loan that appears to have already been paid off:

https://www.lendingclub.com/account/loanPerf.action?loan_id=4557637&order_id=50738377&note_id=22595379

I purchased the note at a premium on 12/12/2014. The note just updated to fully paid today even though it shows as fully paid way back on 12/5/2014 in the payment history.

Have any of you seen this before? I have an email and a voicemail in to LC.

Unfolder

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Re: It looks like I bought a note that was already paid off.
« Reply #1 on: January 06, 2015, 04:52:21 PM »
Don't do that.

Fee

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Re: It looks like I bought a note that was already paid off.
« Reply #2 on: January 06, 2015, 06:08:09 PM »
Don't do that.

Then stop enticing me with them!

yojoakak

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Re: It looks like I bought a note that was already paid off.
« Reply #3 on: January 06, 2015, 06:26:11 PM »
Settlement dates are not to be trusted.

Check your account activity or the PaymentsReceivedToDate column in https://www.lendingclub.com/account/notesRawDataExtended.action

My prediction: there was a $0.92 cent payment on 12/5/14 and a full payoff sometime later, after the note was already in your account.
« Last Edit: January 06, 2015, 06:34:35 PM by yojoakak »

Fee

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Re: It looks like I bought a note that was already paid off.
« Reply #4 on: January 06, 2015, 11:06:17 PM »
Settlement dates are not to be trusted.

Check your account activity or the PaymentsReceivedToDate column in https://www.lendingclub.com/account/notesRawDataExtended.action

My prediction: there was a $0.92 cent payment on 12/5/14 and a full payoff sometime later, after the note was already in your account.

I'm betting that you are correct. I received the payment today with no interest. The settlement date still shows 12/5/14. It looks like I will lose the premium paid as well as the LC investor fees on this one. That's nice infinite negative return.

yaoyao

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Re: It looks like I bought a note that was already paid off.
« Reply #5 on: January 07, 2015, 10:15:27 AM »
This happened to me multiple times.  I dont see any way to prevent this from happening.  It is just pure luck.  Fortunately, I dont buy notes at premium, so my loss is minimal.

Fee

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Re: It looks like I bought a note that was already paid off.
« Reply #6 on: January 07, 2015, 10:20:19 AM »
This happened to me multiple times.  I dont see any way to prevent this from happening.  It is just pure luck.  Fortunately, I dont buy notes at premium, so my loss is minimal.

Valerie from LC told me that they are working on changing all loans from monthly interest to daily interest. At least then we would receive the accrued interest at payoff.

I asked her to place a formal request to have the payment record updated to show the final payment settled yesterday instead of on 12/5/2014 since it seems fraudulent to backdate to a previous year!

yaoyao

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Re: It looks like I bought a note that was already paid off.
« Reply #7 on: January 07, 2015, 11:03:05 AM »

Valerie from LC told me that they are working on changing all loans from monthly interest to daily interest. At least then we would receive the accrued interest at payoff.

I asked her to place a formal request to have the payment record updated to show the final payment settled yesterday instead of on 12/5/2014 since it seems fraudulent to backdate to a previous year!

Daily interest would be nice.  LC should also record separate line for interest payment and principal payment if they are not paid on the same day.  Now, they just combine them and record them on the due date.

Fee

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Re: It looks like I bought a note that was already paid off.
« Reply #8 on: January 07, 2015, 01:21:05 PM »
Update:

Valerie said that there is no way to tell if you are buying a daily interest or a monthly interest note. The loan performance page will not be fixed and will always show that the final payment settlement date was 12/5/14. She assured me that no statistical data is pulled from this page so the loan will statistically fall into the paid off in 2015 category.

Oh, and she gave me a one time courtesy credit of 23 cents to make up for the lost interest. Now to decide what to do with my sudden windfall....

Fred93

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Re: It looks like I bought a note that was already paid off.
« Reply #9 on: January 07, 2015, 02:34:56 PM »
Update:

Valerie said that there is no way to tell if you are buying a daily interest or a monthly interest note. The loan performance page will not be fixed and will always show that the final payment settlement date was 12/5/14. She assured me that no statistical data is pulled from this page so ...

Whoa.  That's not entirely true.  The REST API has no mechanism to allow investors to get performance information (or even credit details) for the notes they own, so if you want such, you are forced to screen scrape.  You have no other choice.  Of course you would get this info from the page in question.

brec

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Re: It looks like I bought a note that was already paid off.
« Reply #10 on: January 07, 2015, 04:46:09 PM »
... The REST API has no mechanism to allow investors to get performance information (or even credit details) for the notes they own, so if you want such, you are forced to screen scrape.  You have no other choice. ...

Lending Club API License and Terms and Conditions:
Quote
V. RESTRICTIONS ON USE

    You agree that you shall not:
...
   Use any automated system or software other than the API to extract data from the Site ("screen scrape");
...

Fred93

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Re: It looks like I bought a note that was already paid off.
« Reply #11 on: January 07, 2015, 06:36:35 PM »
    You agree that you shall not:
...
   Use any automated system or software other than the API to extract data from the Site ("screen scrape");
...

I understand their intent, but if they provide no way to do a thing via the API, then people will do it other ways.  I've said this to them repeatedly.  Those are simply the facts.

Fred

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Re: It looks like I bought a note that was already paid off.
« Reply #12 on: January 07, 2015, 07:03:59 PM »
Valerie from LC told me that they are working on changing all loans from monthly interest to daily interest.

What Valerie said is contradictory to what LC specifies on their "Loan Agreement" page: https://www.lendingclub.com/info/loan-agreement.action

Quote
Interest Calculation Method. Interest is calculated daily on the basis of a 360-day year with 12 months each of which is 30 days (or 30/360) long, regardless if a month has more or less than 30 days. This Note shall bear interest on any overdue installment or principal and, to the extent permitted by applicable law, on any overdue installment of interest, at the interest rate as calculated above.

Fee

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Re: It looks like I bought a note that was already paid off.
« Reply #13 on: January 07, 2015, 07:38:44 PM »
Valerie from LC told me that they are working on changing all loans from monthly interest to daily interest.

What Valerie said is contradictory to what LC specifies on their "Loan Agreement" page: https://www.lendingclub.com/info/loan-agreement.action

Quote
Interest Calculation Method. Interest is calculated daily on the basis of a 360-day year with 12 months each of which is 30 days (or 30/360) long, regardless if a month has more or less than 30 days. This Note shall bear interest on any overdue installment or principal and, to the extent permitted by applicable law, on any overdue installment of interest, at the interest rate as calculated above.

She said that all newly issued loans from about 2 months ago on, are already on daily interest. I'm not sure how they could change the existing loans from monthly to daily without the borrowers approval.

Fred

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Re: It looks like I bought a note that was already paid off.
« Reply #14 on: January 07, 2015, 07:59:38 PM »
This "daily vs. monthly interest accrual" has been discussed last year in this Forum -- http://www.lendacademy.com/forum/index.php?topic=2139.0