Author Topic: Ridiculous number of defaults, anyone else?  (Read 3229 times)

Reginald

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Re: Ridiculous number of defaults, anyone else?
« Reply #15 on: August 24, 2018, 12:43:03 PM »
I think its a combination of Lending Club *not* doing a good enough job of underwriting, and at the same time  *not*  doing a good job of collecting or notifying people who are behind on payments. LC depends upon automatic withdrawls from peoples "bank accounts", which seem to fail from the get go. What bothers me is that LC doesnt seem to care, outside of making robo calls to a number which probably is blocking the incoming calls automatically.

Either that or people with perfect credit are scamming the investors.  Either way LC makes money on origination fees, late fees,  collections, and even chargeoffs.

Check this loan for a WTF moment:

https://www.lendingclub.com/account/loanDetail.action?loan_id=132970216

This loan was made to someone with an A1 credit rating, who has not paid back one red cent.  Why would someone risk their perfect credit score?   The purpose of the loan was Medical Expenses. Its past 30 days due and will be delinquent soon. Do you think the borrower is even aware of this? Does LC care? (Do I care ? - yes I'm going to be out $25).

 :-\ 

Loan ID: 132970216 (Joint Application1) | Lending Club Prospectus
Amount Requested   
$21,000
Loan Purpose   Medical expenses
Loan Grade   A1
Interest Rate   5.31%
Loan Length   3 years (36 payments)
Monthly Payment   $632.32 / month
Funding Received   $21,000 (100.00% funded)
Investors   601 people funded this loan
Note issued on   6/18/18 3:18 AM
Note Status   Late (31-120 days)
Loan Submitted on   5/28/18 8:10 AM
Credit Score Range:   820-824
Earliest Credit Line   07/2004
Open Credit Lines   7
Total Credit Lines   20
Revolving Credit Balance   $4,134.00
Revolving Line Utilization   11.80%
Inquiries in the Last 6 Months   0
Accounts Now Delinquent   0

???  ???

« Last Edit: August 24, 2018, 02:04:06 PM by Reginald »

Harvey

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Re: Ridiculous number of defaults, anyone else?
« Reply #16 on: August 26, 2018, 02:03:41 PM »
What you guys were thinking? You do not even know who you are financing and you think lending club will do the dirty job instead of you?? Come ooon..
www.beelend.com is a global platform, pretty new and zero cost but not too many users. There you will personally verify the borrower and also negotiate the interest rate your lend.
« Last Edit: August 26, 2018, 02:06:21 PM by Harvey »

Fred93

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Re: Ridiculous number of defaults, anyone else?
« Reply #17 on: August 26, 2018, 05:08:30 PM »
What you guys were thinking? You do not even know who you are financing and you think lending club will do the dirty job instead of you?? Come ooon..

We were and are thinking that LC has 1.8 million loans documented in detail, and in fact most pay back.  One can be unhappy with the defaults, but it is innumerate to ignore the data and simply try to ridicule based on a few examples.

.Ryan.

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Re: Ridiculous number of defaults, anyone else?
« Reply #18 on: August 27, 2018, 01:34:11 PM »
What you guys were thinking? You do not even know who you are financing and you think lending club will do the dirty job instead of you?? Come ooon..
www.beelend.com is a global platform, pretty new and zero cost but not too many users. There you will personally verify the borrower and also negotiate the interest rate your lend.

I very much rely on the platform to accurately evaluate and classify targets. When they prove incapable of doing so (and they are proving this), my money goes elsewhere.

There is already enough work involved in picking loans. I'm not sure I need more.

I am, however, curious as what is offered with "personally verifying" borrowers, however your site has been serving up a "404 page not found" all morning.

Reginald

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Re: Ridiculous number of defaults, anyone else?
« Reply #19 on: August 28, 2018, 11:23:34 AM »
Ryan, I agree.

Its difficult for regular people to do a good enough job of screening the loans that Lending Club has already vetted. I guess thats why there are these other third party platforms that will try to do it for you.

I use LC's filters to screen my loans but every once in a while I end up with a loser like Mr. A1 Medical Expenses.  This is an outlier, but its also a reminder that LC is not looking out for you if you just use Automatic Investing - even with filters.

Reg