Author Topic: Does Lending Club ever sue?  (Read 21120 times)

LoanShark

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Does Lending Club ever sue?
« on: February 15, 2015, 01:17:54 PM »
Has anybody ever had recovery payments on a charged off loan generated by legal collections?  It seems as though lending club just hires collection agencies to bother borrowers.

Can somebody give example loans where Lending Club actually filed a lawsuit and won?  I'm familiar with the Prosper 1.0 fiasco..

Thanks.

yojoakak

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Fred93

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Re: Does Lending Club ever sue?
« Reply #2 on: February 15, 2015, 01:48:16 PM »
I have received recovery payments after loans were charged off.  I have never heard of LC lawsuits. 

I figured some people are honest, and pay, even if the payments are very late.

LoanShark

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Re: Does Lending Club ever sue?
« Reply #3 on: February 15, 2015, 04:37:43 PM »
Well I'll be.  Its not possible to tell where the recovery payments come from, but the "lawsuit drafted" note being 30 days after the judgement implies that the debtor failed to pay the judgement within 30 days and the court allowed a judgment enforcement action.   I'll be.

kya

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Re: Does Lending Club ever sue?
« Reply #4 on: February 15, 2015, 07:00:04 PM »
i would hope they are sueing homeowners as this can help if the borrower ever wants to sell the home the judgement must be satisfied or if they want to refinance etc

Unfolder

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Re: Does Lending Club ever sue?
« Reply #5 on: February 15, 2015, 08:15:12 PM »
Seems like it wouldn't be worth the time to chase these deadbeats...who knows. Maybe the new BABA loans will be bigger and worth the legal fees of the chase.

hoggy1

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Re: Does Lending Club ever sue?
« Reply #6 on: February 16, 2015, 08:30:59 AM »

Here's one I think

https://www.lendingclub.com/account/loanPerf.action?loan_id=459562&order_id=855865
How did you find this and have an orderid? Did you own it? I looked it up in the csv file and over $8004 was recovered at a cost of $2801.
« Last Edit: February 16, 2015, 08:33:53 AM by hoggy1 »
Steve

Fred

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Re: Does Lending Club ever sue?
« Reply #7 on: February 16, 2015, 10:39:11 AM »
Seems like it wouldn't be worth the time to chase these deadbeats...who knows.

Charged-off balance was still 85% of original loan. 

If there are 100's of charge-offs, "Better Call Saul" would take the case, and many others, for 30% of recovery. ;-)

Mostly paperwork stuff.

yojoakak

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Re: Does Lending Club ever sue?
« Reply #8 on: February 16, 2015, 10:55:25 AM »
How did you find this and have an orderid? Did you own it? I looked it up in the csv file and over $8004 was recovered at a cost of $2801.

I owned it and posted the link a couple years ago in this thread http://www.lendacademy.com/forum/index.php?topic=574.msg2063#msg2063

hoggy1

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Re: Does Lending Club ever sue?
« Reply #9 on: February 16, 2015, 01:44:08 PM »
How did you find this and have an orderid? Did you own it? I looked it up in the csv file and over $8004 was recovered at a cost of $2801.

I owned it and posted the link a couple years ago in this thread http://www.lendacademy.com/forum/index.php?topic=574.msg2063#msg2063
Were you notified when the recovery happened many years later and see your share deposited in your account?
Steve

yojoakak

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Re: Does Lending Club ever sue?
« Reply #10 on: February 16, 2015, 03:23:12 PM »
Were you notified when the recovery happened many years later and see your share deposited in your account?

Does LencingClub send notifications on Recovery? I've never paid any attention.

I have no idea when the Recoveries came in. It's too hard to search for loans manually in Account Activity, and my scraper stopped working when they redesigned that page.
« Last Edit: February 16, 2015, 03:24:57 PM by yojoakak »

BruiserB

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Does Lending Club ever sue?
« Reply #11 on: February 16, 2015, 05:07:57 PM »

Were you notified when the recovery happened many years later and see your share deposited in your account?

Does LencingClub send notifications on Recovery? I've never paid any attention.

I have no idea when the Recoveries came in. It's too hard to search for loans manually in Account Activity, and my scraper stopped working when they redesigned that page.

No specific notifications. Recoveries just show up mixed in with your daily payments.  You can easily see them on a monthly basis by looking at your statement on page 2.  The cash details include Recoveries, Recovery Fees, and Collection Fees.  A list of individual recoveries shows up at the very end of the statement under "Miscellaneous."


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brycemason

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Re: Does Lending Club ever sue?
« Reply #12 on: February 16, 2015, 09:50:35 PM »
Recoveries are reported annually on the tax statement.

LoanShark

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Re: Does Lending Club ever sue?
« Reply #13 on: February 16, 2015, 10:24:16 PM »
Re: Unfolder

I totally get where you're coming from.  For a creditor, it may in fact not be worth it to pursue recovery in some cases.

But I don't pay anything at all unless recovery payments are received.   As far as I'm concerned, LC should sue the toast off of everybody.

Can you imagine a world where your loss rates magically fell by .5% across all loan grades, not because the economy was getting better, but just because LC was a better loan servicer?  Imagine all the people... getting served with lawsuits.  John Lennon wrote something about that.

Something's mis-aligned in the incentive structure.  We loose nothing when LC sues, but LC looses something even if they sue and win and get money.  Somebody has to fix that!

It seems that LC either has to hold a portion of the loan, or be really good at selling the loans to collection agencies for a good price.
« Last Edit: February 16, 2015, 10:27:00 PM by LoanShark »

hoggy1

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Re: Does Lending Club ever sue?
« Reply #14 on: February 17, 2015, 08:09:49 AM »
Recoveries are reported annually on the tax statement.
Here a puzzle then. My 1099 shows $24.72 in recoveries. However I only have 3 Charge-off loans. And none of them show any recoveries. How do I find this payment?
Steve