Author Topic: Charged off account SOLD with no reimbursement to me  (Read 6461 times)

Debt Free

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Charged off account SOLD with no reimbursement to me
« on: September 08, 2016, 04:05:39 AM »
Auditing my portfolio and found this "lemon".  $25 note with ZERO payments charged off.  Interesting thing is the entry on 9/1/16.  If the account was SOLD to a third party debt BUYER, why did I not receive any portion???


9/1/16 (Thursday)   Account was sold to a third party debt buyer
6/30/16 (Thursday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely
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Typical 10,000 "phones calls, no message left"
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rawraw

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Re: Charged off account SOLD with no reimbursement to me
« Reply #1 on: September 08, 2016, 04:18:28 AM »
Good question.  My suspicion is that the buyer pays you a part of what they collect.  I'd ask LC though

anabio

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Re: Charged off account SOLD with no reimbursement to me
« Reply #2 on: September 08, 2016, 05:53:27 AM »
Auditing my portfolio and found this "lemon".  $25 note with ZERO payments charged off.  Interesting thing is the entry on 9/1/16.  If the account was SOLD to a third party debt BUYER, why did I not receive any portion???


9/1/16 (Thursday)   Account was sold to a third party debt buyer
6/30/16 (Thursday)   Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely

Three or so years ago when I was researching on whether to invest in LC I think I read somewhere that once a loan is charged off LC gets any proceeds, not the investor. I was real surprised the first time I received "recovered" funds on a charged off loan. I was not expecting that...maybe I didn't read that or misinterpreted what I read?
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

Debt Free

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Re: Charged off account SOLD with no reimbursement to me
« Reply #3 on: September 08, 2016, 07:13:09 AM »
I often get "recoveries" from charged off loans.  10 cents here, 7 cents there.  But to see the sale of an account, common sense would mean that the buyer paid to assume the risk of the bad debt leaving LC out of the loop from that point on.  Thus some sort of reimbursement to the investors should be in order.  Considering this was less than a week ago it was sold, I'll wait another couple days before I contact LC.

yojoakak

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Re: Charged off account SOLD with no reimbursement to me
« Reply #4 on: September 08, 2016, 11:31:35 AM »
Dob't worry. Those take a few weeks sometimes months to show up.

Fred93

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Re: Charged off account SOLD with no reimbursement to me
« Reply #5 on: September 08, 2016, 06:20:17 PM »
There's a delay before the recovery fees show up in your account.

LoanShark

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Re: Charged off account SOLD with no reimbursement to me
« Reply #6 on: September 08, 2016, 07:18:31 PM »
It will take several weeks but you will get paid.  Lending club takes a fee but you get most of whatever the debt buyer paid.

The "calling without messages" thing has been discussed before.  Leaving 7 voicemails a day is abusive and can be considered illegal harassment.  Lending club leaves a reasonable number of voicemails, and their early collection, pre-default activity is similar to what most banks do.

Many of the borrowers have 100k plus incomes and presumably have assets.  I would like to see more post-default lawsuits.  Banks retain the "best" and most collectable charge-offs for their internal recovery units.  Lending club seems to sell or abandon 99% of the charge-offs. Thats my only issue with them.  The prices they get are actually pretty impressive.
« Last Edit: September 08, 2016, 07:21:14 PM by LoanShark »

jennrod12

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Re: Charged off account SOLD with no reimbursement to me
« Reply #7 on: September 09, 2016, 03:08:32 PM »
Here's an interesting one, this was a straight roller, never paid a dime of the $5100 borrowed:

7/19/16 (Tuesday) Account was repurchased from a third party debt buyer
6/6/16 (Monday) Account was sold to a third party debt buyer
4/29/16 (Friday) Charged off. PAYMENT 120+ past due. Collections efforts exhausted. Recovery unlikely
4/18/16 (Monday) Payment Solutions specialist attempted to contact borrower (no message left)
4/18/16 (Monday) Collection email sent to borrower: no contact, please call us
...

Account was repurchased from a third party debt buyer?  Why would that happen?

Jenn

Debt Free

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Re: Charged off account SOLD with no reimbursement to me
« Reply #8 on: September 09, 2016, 04:03:35 PM »
LOL.  That one DOES sound like a joke.  Oh, to be a mouse in the corner of the collections executive offices where these decisions are made.

PhilGD

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Re: Charged off account SOLD with no reimbursement to me
« Reply #9 on: September 09, 2016, 05:11:18 PM »
Here's an interesting one, this was a straight roller, never paid a dime of the $5100 borrowed:

7/19/16 (Tuesday) Account was repurchased from a third party debt buyer

Account was repurchased from a third party debt buyer?  Why would that happen?

Jenn

Maybe they found the loan to be fraudulent? In which case they're obligated to buy back the debt from investors. You might see a 100% recovery on this one. Let us know what happens!

Rob L

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Re: Charged off account SOLD with no reimbursement to me
« Reply #10 on: September 09, 2016, 05:42:35 PM »
Maybe they found the loan to be fraudulent? In which case they're obligated to buy back the debt from investors. You might see a 100% recovery on this one. Let us know what happens!

I'll bet you are right.

RT45

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Re: Charged off account SOLD with no reimbursement to me
« Reply #11 on: September 09, 2016, 05:52:29 PM »
@jennrod12 Could you post the loan ID that collection log belonged to?

jennrod12

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Re: Charged off account SOLD with no reimbursement to me
« Reply #12 on: September 09, 2016, 07:17:58 PM »
This is the load ID:  65775115

(Kind of embarrassed that I bought it - 3 recent inquiries!  What was I thinking?!?!  I think it was bought in haste, because it wouldn't have made it through my filters.)
« Last Edit: September 09, 2016, 07:21:28 PM by jennrod12 »

Larry321

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Re: Charged off account SOLD with no reimbursement to me
« Reply #13 on: September 13, 2016, 05:21:13 PM »
This has been a terribly month for my account.

I have had 32 Charged off loans. I have 2838 Issued and Current loans.

It seems l have been having more defaults recently.

LC notes investor for 3 years

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