Author Topic: The identiy fraud repayment promise  (Read 6695 times)

jheizer

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Re: The identiy fraud repayment promise
« Reply #15 on: March 22, 2017, 09:38:06 AM »
I'm kind of curious if once you get the list if it is as easy as filtering your fully paid loans and finding ones where the PaymentsReceivedToDate = Note amount, or just INTEREST_RECEIVED = 0.  I wouldn't think they'd pay us any interest unless they were trying to hide these.  All mine had interest paid.
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bluto

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Re: The identiy fraud repayment promise
« Reply #16 on: March 22, 2017, 10:26:57 AM »
I had a late loan get credited by lendingclub a few years ago.  It was classified as "Adjustments/Credits" on the cash details page and shown under miscellaneous under the transaction log with the description "credit for ineligible loanID 26048338".  After the transaction it doesn't show up in my notes (as a prepaid loan) it's gone as though I sold it. I can't seem to find any other records for it. 

anabio

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Re: The identiy fraud repayment promise
« Reply #17 on: March 22, 2017, 10:36:32 AM »
Good catch, Fred.  I had the same thoughts when I watched Scott's keynote (which otherwise I liked) --- my mind instantly went to the opposite of what he said re: "we have a strong incentive to catch ID theft since we're on the hook" (paraphrased), to which my mind immediately translated "no, you have a perverse/reverse incentive not to monitor for ID theft, since otherwise you're on the hook".

Transparency solves for most of that.  Let's see it.  Thanks.

I had the identical thought. LC has negative incentive to identify identity theft. By not segregating out the numbers it's impossible for us to tell if they are detecting an overall number of cases consistent with  industry averages.

This all goes back to a few of the Q&A's I read before I started investing in LC.

LC's answer to those questions was on the order of: Yes, we could do that but please trust us not to do that. After all, if we did that  we would upset our investors and we wouldn't want to do that.

Of course at that time their investor base only included retail investors, not banks. Methinks their retail investors mean a lot less to them now...
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arcee49

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Re: The identiy fraud repayment promise
« Reply #18 on: March 22, 2017, 12:17:31 PM »
I'm kind of curious if once you get the list if it is as easy as filtering your fully paid loans and finding ones where the PaymentsReceivedToDate = Note amount, or just INTEREST_RECEIVED = 0.  I wouldn't think they'd pay us any interest unless they were trying to hide these.  All mine had interest paid.

On a related note, does LC take out their servicing fees on these reimbursed loans?  Presumably they're repaid before the one year mark so they'd only take 1% of what the first payment amount would have been.

RT45

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Re: The identiy fraud repayment promise
« Reply #19 on: March 22, 2017, 01:44:38 PM »
Agreed, would be helpful knowing how you contacted LC to get a list of which loans were fraudulent for my accounts.

Fred93

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Re: The identiy fraud repayment promise
« Reply #20 on: March 22, 2017, 03:44:18 PM »
How did you contact Lending Club? I wouldn't mind getting a list for my loans.

They request that you contact the retail support team via investing@lendingclub.com

Fred93

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Re: The identiy fraud repayment promise
« Reply #21 on: March 22, 2017, 05:59:51 PM »
I had a late loan get credited by lendingclub a few years ago.  It was classified as "Adjustments/Credits" on the cash details page and shown under miscellaneous under the transaction log with the description "credit for ineligible loanID 26048338".  After the transaction it doesn't show up in my notes (as a prepaid loan) it's gone as though I sold it. I can't seem to find any other records for it.

I suspect that there are different categories.  Perhaps "ineligible loan" is something different than "identity theft loan".  I'm guessing, as there has been very little (no) information to date. 

Once some of us have lists of notes that were bought back because of identity theft, we find them on our statements.  You can check for example if that loan in particular is one of them.

Fred93

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Re: The identiy fraud repayment promise
« Reply #22 on: March 27, 2017, 03:00:20 PM »
I heard back from Lendingclub today.  They say that they have determined that I have had ZERO loans affected by identity theft in my 9 years and 8399 loans worth of investing at LC.

Rob L

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Re: The identiy fraud repayment promise
« Reply #23 on: March 27, 2017, 05:39:55 PM »
Now there's a real surprise!

Fred93

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Re: The identiy fraud repayment promise
« Reply #24 on: March 28, 2017, 02:35:19 AM »
I currently have over 70,000 active notes and easily have double that amount purchased since Lending Club opened their doors.

Please make a request directly to LC for this info.  With your larger # of notes, it will be more difficult for them to claim with a straight face that identity theft has never happened.

.Ryan.

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Re: The identiy fraud repayment promise
« Reply #25 on: March 29, 2017, 01:35:02 AM »
I heard back from Lendingclub today.  They say that they have determined that I have had ZERO loans affected by identity theft in my 9 years and 8399 loans worth of investing at LC.

Well, at least if your note picking skills ever seem to be going down the shitter, you can take solace in the fact you have phenomenal judgement of character.  ;)

Fred93

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Re: The identiy fraud repayment promise
« Reply #26 on: March 29, 2017, 01:49:55 PM »
REQUEST FOR YOUR ACTION

I hope many of you have some interest in this identify-fraud issue.  For many years, LC has promised that they will repurchase notes from loans where the borrower was an identity-fraudster.  Its explicit right in the lender agreement.

For many years we've discussed whether they might actually be doing this or not. 

Recently they admitted that they had not been notifying lenders, as required by the agreement, and that the repurchased notes would show up as prepays.  They agreed to identify which of the notes I have purchased over the past 9 years were repurchased due to identity-theft.  Answer came back a few days later: NONE.

That might be right.  Could be none out of nearly 10,000 loans.  I have no evidence one way or the other, except that 0 out of 10,000 would be a very very low rate of identity-theft. 

I urge you to make the same request of LC for your own account.  Call them or send them email, and ask them to identify which of your loans were repurchased by LC due to identity-theft.

If we can establish that some loans have been repurchased from some lenders, that will help us understand and believe what is going on.
« Last Edit: March 29, 2017, 01:52:23 PM by Fred93 »

RT45

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Re: The identiy fraud repayment promise
« Reply #27 on: March 29, 2017, 04:31:09 PM »
I have submitted a request with my notes.

AnilG - any way you could email your users to notify them about requesting LendingClub to disclose if they've had any fraudulent loans that could be up for reimbursement? Might make Peercube pay for itself instantly. :)

Lovinglifestyle

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Re: The identiy fraud repayment promise
« Reply #28 on: March 30, 2017, 08:30:33 PM »
I was informed today that I have 0 (out of 12,117) notes that were issued as a result of identity fraud.

au88

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Re: The identiy fraud repayment promise
« Reply #29 on: April 01, 2017, 10:36:20 AM »
Long time reader, first time poster. I have had ~21000 notes in my account over its 8 year history. I've reached out to LC and will let you know what they say.