Author Topic: Another example of "late note" that is not late  (Read 2011 times)

edward

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Another example of "late note" that is not late
« on: January 14, 2015, 07:51:27 PM »
https://www.lendingclub.com/account/loanPerf.action?loan_id=5755338&order_id=8245002&note_id=25010109

Looking at my late notes, I was surprised when I looked at the payment history of this note. It showed recent payments but also a notation that the same payments were not received. I sent LC an email on this, and received a phone call back last evening.

They said it was an error, and was the result of an incorrect late fee being assessed when the payments had in fact been received. I was told that when the borrower didn't pay the late fee their computer system showed the loan as being late. But they assured me that the error would be corrected with the overnight computer processing run.

Well the note is still showing late a day later and the payments are still there along the "payment not received" notation.

Just a reminder to those who automatically sell their late notes to be sure and look at the actual history of the note to ensure it's actually late.

I also note that it's on a "payment plan", which is probably just the regular LC way of trying to draft the account later when a payment isn't received. I bet the borrower is going to be surprised when an unexpected bank draft of his incorrectly flagged "late" account occurs.

yojoakak

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Re: Another example of "late note" that is not late
« Reply #1 on: January 14, 2015, 08:20:46 PM »
Can you check your Account Activity to see what payments were actually made, and on what dates?

In my experience Late Fees are actually quite rare. Take a moment to enjoy them.

But let's say the 11/14/14 payment was made on 12/4/14, so it was late.

If the 12/14/14   payment was actually made on 12/22/14 then it shouldn't have been counted as late. But maybe a regular payment was made on 12/22 and a 4 cent payment was made sometime later, so they count that one as late too.

So now maybe it's 2 months late.

Since we're talking "LendingClub math" this is entirely possible.

See also:

http://www.lendacademy.com/forum/index.php?topic=2889.0
« Last Edit: January 14, 2015, 08:29:32 PM by yojoakak »

rawraw

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Re: Another example of "late note" that is not late
« Reply #2 on: January 15, 2015, 06:34:00 AM »
In my experience Late Fees are actually quite rare. Take a moment to enjoy them.
That is changing.  LC is no longer waiving collection cost penalties and is providing late fees as a result as well.  The net effect is probably not favorable to us, but they changed this policy fairly recently.