Author Topic: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???  (Read 7128 times)

smihaila

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This feature was working just fine until today. When I tried today to perform a withdrawal, to my perfectly valid external linked bank account, LC website had redirected me to a page stated that I do not have any linked account defined in the system. And suggested wire transfers or mailing a check. But when when I go to my account profile, I surely see my linked account - the same one which I have used 3 days ago for another transfer out. What gives?

Is anyone else experiencing the same? Could it be a bug or LC is starting to behave nasty????
Thank you.

yojoakak

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #1 on: October 27, 2016, 10:24:58 PM »
I've never had a problem with it. Worked again tonight.

Fred93

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #2 on: October 27, 2016, 10:52:58 PM »
same one which I have used 3 days ago for another transfer out.

Three days isn't long enough for them to consider one transfer "done".  Perhaps they disallow a 2nd xfer so fast after the 1st one?  Just a guess. 

rawraw

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #3 on: October 28, 2016, 01:42:38 AM »
I've made like 6 withdrawals over the past 3 days.  Working fine for me

BruiserB

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LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #4 on: October 28, 2016, 01:47:02 AM »
same one which I have used 3 days ago for another transfer out.

Three days isn't long enough for them to consider one transfer "done".  Perhaps they disallow a 2nd xfer so fast after the 1st one?  Just a guess.

In the past this wasn't an issue.  For a while I was making daily transfers out of my account. There's no valid reason they would need to let one transfer complete before allowing another. Hopefully it's just some setup issue with the original poster's account. If I found this issue on my account I'd be extremely upset and I'd be on my way out of LC as soon as possible.


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smihaila

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #5 on: October 28, 2016, 01:50:53 AM »
Three days isn't long enough for them to consider one transfer "done".  Perhaps they disallow a 2nd xfer so fast after the 1st one?  Just a guess.

In the past this wasn't an issue.  For a while I was making daily transfers out of my account. There's no valid reason they would need to let one transfer complete before allowing another. Hopefully it's just some setup issue with the original poster's account. If I found this issue on my account I'd be extremely upset and I'd be on my way out of LC as soon as possible.

My thoughts exactly. I do recall doing withdrawals at the same day interval in the past, and it was working. It may be that LC has put in place more aggressive "policies" now, something surely changed. Maybe it's not a coincidence that I've been getting lately 2 or 3 e-mails from LC's management, asking to fill in some polls, and one of the questions prevailing was something like "what is the reason for performing withdrawals so often". This attitude from LC is really pissing me off now, and I've sent them an e-mail asking for clarifications.

Debt Free

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #6 on: October 28, 2016, 02:41:44 AM »
Might have set off some anti-terrorism funding trigger?  Or an anti-account hacking trigger?  Most likely a simple glitch.

I'd try reactivating your linked account before getting too excited.

yojoakak

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #7 on: October 28, 2016, 04:36:52 PM »
I've made like 6 withdrawals over the past 3 days.  Working fine for me

Twice a day? What's the hurry?

rawraw

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #8 on: October 28, 2016, 04:45:46 PM »
I've made like 6 withdrawals over the past 3 days.  Working fine for me

Twice a day? What's the hurry?
LC dropped below my hurdle rate for another transaction, so I've been selling certain types of notes (low grade recent vintage) to downsize the portfolio and move some money to the other  area.  Hopefully looking to deploy the cash in a week or so, so trying to accumulate it quickly. And it just seems that the payments don't post at once, so I transfer it whenever I see cash. But I'm still investing and will start growing my account again either in December or bonus season, depending.

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smihaila

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #9 on: October 28, 2016, 05:25:48 PM »
Might have set off some anti-terrorism funding trigger?  Or an anti-account hacking trigger?  Most likely a simple glitch.
I'd try reactivating your linked account before getting too excited.

I simply cannot do anything with my existing linked accout at this stage - I do see it, but cannot delete it or add another one.
And LC is NOT answering my e-mails.

And what anti-money laundering? For a pesky $35 withdrawal.
Really, I'm very pissed off on LC now.

Fred93

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #10 on: October 28, 2016, 05:37:13 PM »
I simply cannot do anything with my existing linked accout at this stage - I do see it, but cannot delete it or add another one.

That really sounds like something screwed up in the computers.

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And LC is NOT answering my e-mails.

They're just slow.  You can call them.


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And what anti-money laundering?

Government regulation crap.

smihaila

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #11 on: October 28, 2016, 07:47:44 PM »
I've finally got an e-mail reply from LC:

"We reviewed your account and see that you recently updated the bank account associated with your Lending Club account. Please note that the first transfer scheduled acts as a verification step for this new bank account information. Transfers to and from your Lending Club account are processed via Automated Clearing House (ACH) and take 4 business days to complete.

Please note that the pending withdrawal executed on 10/25/2016 and once the transaction completes processing you will be able to schedule additional transfers to and from your Lending Club account.

We hope this is helpful. Please feel free to contact us at (888) 596-3159 with any additional questions."

It all makes sense now. But nowhere in their link account setup they mention that any update (it wasn't a first-time addition) will trigger the 1st transfer making use of the new info, to be much slower and locking the system until they get some sort of ACH confirmation back. What is also interesting, is that that 1st transfer was cleared with my new credit union almost instantly - 1 day after the transfer was initiated on the LC side (Oct 25).

Thank you all for the heads up. Good that it's clarified now.

Debt Free

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #12 on: October 29, 2016, 12:05:04 AM »
So if I understand you, you initiated a change in bank account in the midst of your transfers?  Yes, I could see that locking your account for a short period of time.  Only makes sense security-wise.

smihaila

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Re: LendingClub no longer allows ACH/EFT withdrawals/transfer outs???
« Reply #13 on: October 29, 2016, 12:12:15 PM »
So if I understand you, you initiated a change in bank account in the midst of your transfers?  Yes, I could see that locking your account for a short period of time.  Only makes sense security-wise.

No, it wasn't that. The sequence of operations was pretty simple and common sense:

- Around Oct 22-23 (or earlier, can't recall exactly because LC's scheduled transfer get processed much later), I have initiated a transfer out, but using a new external / linked account. Which you can define ad-hoc, as you enter the amounts for the withdrawal. The old external account was deleted (LC allows only 1 at any time, anyway).

- Then, I have patiently waited for the transfer to be processed. Looked into the external bank account and saw the LC amounts coming in, quite fast (this also a good opportunity to test the speed of ACH ins and out with my new bank / credit union account).

- About 4 business days ago, I then decided to perform a second transfer out from LC, and I could not. Their back-end was showing completely out-of-context messages like "you have no external account defined" and when going to Profile->settings->bank account, the (recently setup) account was surely there, and obviously I couldn't even alter that info, because it was "locked" (a message like "for money laundry and security reason, we do not allow you to make changes to external accounts at this time" suggesting that you can't perform such changes TOO OFTEN - I've seen that status on many occasions actually, without even doing any recent transfers).

So you see, nothing out of the ordinary. It's just the fact that with each new external account updates, LC treats the 1st transfer that makes use of the new info, in a special way. Somewhat similar to what other banks and credit unions do to validate a new external linking. But without probing the acct for 2 small amounts and asking you to confirm them back. I guess they were waiting for a harder form of confirmation from my external account, once the ACH transfer was complete. While my other bank quickly showed the transfer as being complete (in very reasonable amount of time, like 1-2 business days).

Conclusion: LC's transfer out system is too "anal" and waits for too long for the external acct to be "cleared" / considered valid for any  further transfers.