Author Topic: What's with the 2-cent Partial Payments?  (Read 10234 times)

william

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Re: What's with the 2-cent Partial Payments?
« Reply #15 on: February 06, 2013, 09:49:23 PM »
Maybe it's because the borrower was contacted by LC and then put on a payment plan but the log as many people said is not accurate or updated as many think it is. Just watch the note and see if it ever does goes into a payment plan status.

Keltset.........Now you've done it!  Did you have to be so honest? You're removed the comfort blanket from a bunch of transparency believers. What, you spoke the truth? Come on buddy, what were you thinking? This is America.........No one wants to hear the truth!  :)  Just look at who we just re-elected?  :)

While I agree the person we re-elected is not honest, I can assure you that the other guy and 100% of politicians are not honest. (this is of course rounded because I would not be able to fit all the nines after 99.99%)
« Last Edit: February 06, 2013, 09:51:33 PM by william »

DanB

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Re: What's with the 2-cent Partial Payments?
« Reply #16 on: February 07, 2013, 05:33:58 AM »
New Jersey Guy...........Ok, here's a hint at one possible answer. What does ACH & automobile automatic transmissions have in common vis a vis LC borrowers & new car buyers? Don't say I never did anything for you (for free).  :)

Yes, i know. First Keltset decimates the illusion of the collection log & now I've put a few porous holes into the strategy of Folio sellers of potential distressed notes,............... who based their strategies without taking the above into account  :)

New Jersey Guy

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Re: What's with the 2-cent Partial Payments?
« Reply #17 on: February 07, 2013, 02:58:43 PM »
"you could probably help things along a bit by not referring to them as "2 cent partial payments"...............because that's not really what they are & perhaps people are taking you literally? "

Dan, 2-cents, not meaning 2 meager pennies paid instead of a $450 payment.  Rather, it's in relation to a $25 note.

Here!  Here's a 6-cent partial payment.
Look at due date 12-23
https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=697250&order_id=1451454&note_id=4058411

That 6-cent "Partial Payment" equates to about $29 vs. his actual payment of $251/mo.

Now, look in the collection log.  There is no indication (that we know of) of any contact with the borrower.  No payment plan, no anything.

So again, I raise the question?
He had a payment of $251 due.
Instead, a mere $29 was paid.

Does Lending Club keep trying to debit the account (over and over) by lowering the amount asked for until they find a balance?  For example:

$251.....Declined
$200.....Declined
$100.....Declined
$45.......Declined
$30.......Declined
$29.......APPROVED!
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

DanB

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Re: What's with the 2-cent Partial Payments?
« Reply #18 on: February 07, 2013, 05:55:05 PM »
New Jersey Guy............I understand your question perfectly. What I don't understand is why you seem so incredibly confident in the "collection log's" accuracy, timeliness, integrity etc., even after Keltset (& to a lesser extent myself) have pointed out the many "issues" inherent in these logs. If you were to accept even half of what we've said, then you wouldn't keep going back to the "log" as if everything written or not written in it is like the word of God!

Once you come to accept the "collection log" for what it is, the answers to these questions that seem to have you flummoxed will come much easier to you.

Furthermore,............... I have also provided you with hints to an alternate possible answer to your question which you've chosen to ignore. Sorry, but just being the answer man isn't that amusing to me. You'll have to play along & put a bit more self effort into this if you want my input  :)

yojoakak

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Re: What's with the 2-cent Partial Payments?
« Reply #19 on: February 07, 2013, 08:53:28 PM »
Furthermore,............... I have also provided you with hints to an alternate possible answer to your question which you've chosen to ignore. Sorry, but just being the answer man isn't that amusing to me. You'll have to play along & put a bit more self effort into this if you want my input  :)

Good ole' Dan! Always quick with the "hints" yet stingy with anything that looks like "information". And since you already seem to have all the answers, I don't understand why you waste your time in these chat boards.


So the Collection Log is horribly inaccurate. Why even bother to have it at all? (And at what point does "horribly inaccurate" become  "false representation"?)
« Last Edit: February 07, 2013, 09:17:47 PM by yojoakak »

Keltset

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Re: What's with the 2-cent Partial Payments?
« Reply #20 on: February 07, 2013, 10:01:58 PM »
The most likely scenario is that the person called up, or was called, and said they can't make their payment. The collector/representative asked what he could pay or pressured a 'good faith' payment on the account and this was the result. Back in my collection day's I could always pressure a person on the phone to pay at least $25.00 on the spot.

It's not effective for LC to use the:

100%... decline
80%... decline
60%... decline
40%... decline
20%... decline
10%... approved

Why? Their payment method is via ACH and not debit/credit card. ACH is slow and cumbersome and it would take over 20 day's to process the above transactions if they were hit/fail/try next. Now I do know I used to send 20%, 30%, and 50% out all at once and whatever (if any) cleared it cleared but this is not the common action of a collector.  Now you may potentially find a collector savvy enough to realize they can verify balances over the phone and take that amount, I would presume this is less likely the scenario again because this is not common in the industry. The person was more likely hounded into paying something and so he/she did. The log wasn't updated because the collector/representative didn't notate the actual contact just managed the payment portion of it.

Payment plan would indicate that specifics of payments were scheduled in order to switch the status of the account (putting it into a payment plan). This probably did not happen as the arrangement or payment did not involve the reality of future payments that the collector/representative could schedule.

General rule: Collection logs exist for self preservation and not for any other real purpose. LC's management may want to pass this information on and wish it to always be perfect but implementing that is an entirely different story. I have never met a collector that properly notates and updates every single account for every single attempt and/or contact. It simply doesn't happen. Also keep in mind, we are seeing a very limited scope of the notes on the account which means that a note would have to be done a specific way for the line to populate to the retailers (us). What if they didn't use the 'Customer called in' type of note but instead selected 'Other' and typed in their note. 'Other' wouldn't prompt action onto the retail note whereas 'Customer called in' or 'Customer promised to pay' could. (Obviously I'm making assumptions about how their systems work but I would presume they basically all work the same and its a logical connection to assume a ptp automatically populates the retail side whereas some other type of notation may not.)

Bottom line is that collection logs are useless for anything outside of arbitration or legal action/defense. With the exception of some types of good information that can be gained such as PTP's without payment coming through or BK notifications, and the transition to a 3'rd party agency....

DanB

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Re: What's with the 2-cent Partial Payments?
« Reply #21 on: February 07, 2013, 10:06:40 PM »
Furthermore,............... I have also provided you with hints to an alternate possible answer to your question which you've chosen to ignore. Sorry, but just being the answer man isn't that amusing to me. You'll have to play along & put a bit more self effort into this if you want my input  :)

Good ole' Dan! Always quick with the "hints" yet stingy with anything that looks like "information". And since you already seem to have all the answers, I don't understand why you waste your time in these chat boards.


So the Collection Log is horribly inaccurate. Why even bother to have it at all? (And at what point does "horribly inaccurate" become  "false representation"?)

I come here for entertainment purposes, mostly mine. It's really quite simple. If you want free info from me you have to play my "game" & by my rules. If I want free info from you then I'll have to play your games & by your rules.   :)

Why even bother having a collection log? Because the log serves the purpose to make SOME people feel better vis a vis the whole touchy feely "transparency thing". I am completely ok with no collection log, actually...............as I rarely if ever look at it anymore.


Zach

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Re: What's with the 2-cent Partial Payments?
« Reply #22 on: February 07, 2013, 10:19:47 PM »
Furthermore,............... I have also provided you with hints to an alternate possible answer to your question which you've chosen to ignore. Sorry, but just being the answer man isn't that amusing to me. You'll have to play along & put a bit more self effort into this if you want my input  :)

Good ole' Dan! Always quick with the "hints" yet stingy with anything that looks like "information". And since you already seem to have all the answers, I don't understand why you waste your time in these chat boards.


So the Collection Log is horribly inaccurate. Why even bother to have it at all? (And at what point does "horribly inaccurate" become  "false representation"?)

That's a great point.

DanB

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Re: What's with the 2-cent Partial Payments?
« Reply #23 on: February 07, 2013, 10:23:21 PM »
zpbsfg.............What is a great point?

Zach

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Re: What's with the 2-cent Partial Payments?
« Reply #24 on: February 07, 2013, 10:28:55 PM »
zpbsfg.............What is a great point?

Furthermore,............... I have also provided you with hints to an alternate possible answer to your question which you've chosen to ignore. Sorry, but just being the answer man isn't that amusing to me. You'll have to play along & put a bit more self effort into this if you want my input  :)

Good ole' Dan! Always quick with the "hints" yet stingy with anything that looks like "information". And since you already seem to have all the answers, I don't understand why you waste your time in these chat boards.


So the Collection Log is horribly inaccurate. Why even bother to have it at all? (And at what point does "horribly inaccurate" become  "false representation"?)

That is.

DanB

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Re: What's with the 2-cent Partial Payments?
« Reply #25 on: February 07, 2013, 11:27:50 PM »
Keltset..............I for one would like to thank you for taking the time & effort to break down the collection log for us & for sharing your real world experiences with these types of logs. I would like to think that others reading this thread will also express their gratitude, once they've snapped out of their p2p version of "denial" on the whole matter.  :)

Keltset

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Re: What's with the 2-cent Partial Payments?
« Reply #26 on: February 07, 2013, 11:39:04 PM »
Quote from: DanB
Why even bother having a collection log? Because the log serves the purpose to make SOME people feel better vis a vis the whole touchy feely "transparency thing". I am completely ok with no collection log, actually...............as I rarely if ever look at it anymore.

I would definitely mirror the idea that the only purpose in passing this "log" to the retailers is to make them 'feel' better about LC's 'efforts' on their behalf. They are trying to make themselves look better to those whom would be encouraged by this.

DanB--- You always crack me up I think I follow threads you are involved with at a much higher level of activity than {most} others :P

DanB

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Re: What's with the 2-cent Partial Payments?
« Reply #27 on: February 08, 2013, 04:28:32 PM »
Keltset............Thank you. You're too kind.  :)