Author Topic: automated monthly payment failed due to account issue  (Read 3840 times)

edward

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automated monthly payment failed due to account issue
« on: June 02, 2015, 02:15:09 PM »
"Notice sent to borrower: automated monthly payment failed due to account issue"

Is this another kiss of death, like "payments will be mailed?" What has been your experience?

Would you view it differently at the start of the note repayment process (just working out the routing/account number) as opposed to mid-stream ("hey your borrower just closed their account...good luck.")

LC clearly labels when lack of payment is due to "non-sufficient funds" so it shouldn't be the same as that.




Fred93

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Re: automated monthly payment failed due to account issue
« Reply #1 on: June 02, 2015, 02:27:22 PM »
I think it is just as bad as any other failure to pay.

Likely means the borrower closed the account.

Lovinglifestyle

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Re: automated monthly payment failed due to account issue
« Reply #2 on: June 02, 2015, 03:10:09 PM »
I find it to be bad news, worse waiting to happen.  Have seen some go to bankruptcy, financial counseling, late, and collections. 
Relationship trouble that leads to closed accounts without responsible payment transitions, or the advice of a lawyer, are possible causes that I suspect.  No matter the cause--what you said about the kiss of death and most likely a closed account pretty much says it all!







kya

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Re: automated monthly payment failed due to account issue
« Reply #3 on: June 02, 2015, 09:45:00 PM »
yup...just like the old "customer chooses to mail the payment"....funny how it never arrives!

Lovinglifestyle

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Re: automated monthly payment failed due to account issue
« Reply #4 on: June 02, 2015, 10:01:11 PM »
yup...just like the old "customer chooses to mail the payment"....funny how it never arrives!

Several of mine like that have become BKs in a couple of months or less.  However, a number of 100% "current" notes have also gone BK recently!

kya

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Re: automated monthly payment failed due to account issue
« Reply #5 on: June 03, 2015, 07:36:21 AM »
i am also getting "hit" with a rash of bk's as of late.... debt ratio and revolving usage all in line at time of loan so no trend to report other than applicants had lower lending club grades and lower fico's

kbenson99

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Re: automated monthly payment failed due to account issue
« Reply #6 on: June 03, 2015, 10:51:04 AM »
The "automated monthly payment failed due to account issue" collection message is an almost certain kiss of death.  I have 43 notes that have this message; 42 have either been Charged Off or are in the Late (31-120 days) status.  The only one that has gone back to Current is https://www.lendingclub.com/account/loanPerf.action?loan_id=14578020&order_id=21340701&note_id=44687509. So, for me, ~97% death sentence.

The "payments will be mailed" is not as bad as the "account issue" message, but is a "slow" kiss of death.  I only have 7 that ever had this message.  4 have been Charged Off, 1 is in Late (31-120 days) status (and has a "cease and desist" message, so this one is dead), 1 is now Current, and 1 always pays In Grace or Late 16+.

Late (31-120) days https://www.lendingclub.com/account/loanPerf.action?loan_id=10153146&order_id=15441795&note_id=37745401
Current https://www.lendingclub.com/account/loanPerf.action?loan_id=6524821&order_id=10171867&note_id=28491298
Pays Late https://www.lendingclub.com/account/loanPerf.action?loan_id=18875111&order_id=26801455&note_id=49574052