Author Topic: Faster payment processing coming soon  (Read 453 times)

arcee49

  • Newbie
  • *
  • Posts: 30
    • View Profile
Faster payment processing coming soon
« on: February 11, 2019, 10:57:05 PM »
Got an email on Friday, February 8, 2019 with the body:

Quote
Faster payment processing coming soon.

arcee49, we're always looking for ways to improve your LendingClub experience—in line with that goal, we're speeding up the LendingClub payment process.
Effective February 12, 2019, when borrowers make payments, LendingClub will deposit them into your investor account within one business day versus the current wait time of up to five business days. This change does not require any action on your part.
You may notice some differences in your account statements related to accelerated payments, such as failed ACH payments. See additional detail here.

As always, we thank you for your business, and please reach out with any questions at the email address or phone number below.

I emailed them about how this affects Folio transactions.  Here's there response:

Quote
You are correct that the wait time for posting Notes for sale on Folio will be reduced! Because it will take 1 business day rather than 5 business days for payments to be posted to your LendingClub account after a borrower initiated a payment, the wait time to post your Notes for sale will be shorter as the "payments pending" window is shortened. Additionally,  if a Folio trade has already taken place and there’s a payment reversal, the principal outstanding will be adjusted by LendingClub, and the liability comes out of the new loan/Note owner’s pocket.

So Folio buyers beware.  May still want to wait several business days after the payment date to verify it went through.

(Originally posted this in "Investors - LC" but realized it might be better suited to "Foliofn - LC". Mods, feel free to delete the other post.)