Author Topic: IGP No Contact Made  (Read 2548 times)

jz451

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IGP No Contact Made
« on: January 06, 2017, 01:57:09 PM »
Over the past couple of months I have noticed that when notes of mine become late Lending Club has not made any contact with the borrower between the due date and settlement date when the ACH is being pulled, or after when the note goes into its Grace Period. Does anyone know why Lending Club is not making the effort to contact some of its borrowers?

Data Junkie

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Re: IGP No Contact Made
« Reply #1 on: February 25, 2017, 12:56:29 PM »
I asked about this once when I noted the collection log showed no contact activity on a late loan.  Here is an excerpt of the reply I received from LC:

"Generally, when a loan is delinquent and the collection log on a loan performance page does not have any updates, it is due to unconfirmed information that we have received pertaining to a borrower's account. For example, if a borrower tells us that they have filed for bankruptcy, we do not update the loan performance page to show that information until we have confirmed the bankruptcy. Additionally, we are unable to contact the borrower once they mention bankruptcy to us.

Similarly, if a borrower begins working with a debt management company or is going through a debt settlement, we are unable to update the loan performance page until we have received confirmation and we are unable to reach out until the debt management company permits.

Another example for when a loan performance page is not updated is when we hear news that a borrower has passed away. We cannot update the collection log until we have received confirmation."


For the loan I was inquiring about, all of a sudden it was paid off when it was pretty late-- great news!  As a side note, I also have another loan where there was a note in the log that the borrower had passed away.  Hope that helps.

Lovinglifestyle

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Re: IGP No Contact Made
« Reply #2 on: February 25, 2017, 02:48:47 PM »
Thank you, that is helpful information I hadn't known before.  It's the opposite of what I was thinking when contemplating sale of those notes.  I thought no news might be good news. 

anabio

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Re: IGP No Contact Made
« Reply #3 on: February 25, 2017, 05:18:28 PM »
Thank you, that is helpful information I hadn't known before.  It's the opposite of what I was thinking when contemplating sale of those notes.  I thought no news might be good news.

"Hold on thar..." Don't go thinking all non logging "activity" is bad. I've had notes that had a failed payment that also had nothing in the log and there was no problem.

One note in particular comes to my mind. If you want the loan number let me know...but I don't want to go looking for it right now. I recollect that the borrower paid almost 2 years worth of payments without fail. Then around the summer (June or July timeframe) they missed a payment. The loan went through IGP and into 16-30 late with NO information in the log...nothing...nada...log was blank. They submitted the payment around 20 days late, then picked up future payments. I'm not sure why LC put nothing in the log. Maybe they saw the exemplary payment history and decided not to bother him/her. Maybe he/she knew someone at LC, maybe the LC collections agent forgot to log some contact that was actually made.  However, it was not because of something "bad". There was no bankruptcy or debt modification program or such... they picked up and for the next 6 months or so made on time payments. Then around the end of the year they missed another payment. This time LC contacted that person. Why LC didn't make contact at the first failure I don't know but it obviously (to me anyway) was not because of one of the scenarios given above.
As Will Rogers stated: : I'm not as concerned about the return on my money as I am the return of my money

AnilG

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Re: IGP No Contact Made
« Reply #4 on: February 25, 2017, 05:48:03 PM »
In the absence of any logging for IGP notes, your decision will be driven by your prior personal experiences or past available information. If LFS's prior experience has been that majority of IGP notes with no logging are bad, LFS will consider selling IGP notes. Just because a few IGP notes turned out good ex-post or someone else (anablo) had good ex-post experience doesn't invalidate LFS actions based on the information available at the time of the decision. "Some may turn out good" doesn't help anyone in making decision about what to do with IGP notes.

Thank you, that is helpful information I hadn't known before.  It's the opposite of what I was thinking when contemplating sale of those notes.  I thought no news might be good news.

"Hold on thar..." Don't go thinking all non logging "activity" is bad. I've had notes that had a failed payment that also had nothing in the log and there was no problem.
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Anil Gupta
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