It seems that Lending Club is initiating usage of their collection agency much sooner than before. Historically, notes would have to be 60 or more (and sometimes 90) days late before going into collections. Now, many notes that are freshly 31 days late are being sent to collections.
This seems to coincide around the same time they streamlined their payment processing times.
Anyone else notice this?
I just saw one go a lot faster than that - external collections engaged the day after the first missed payment, before the loan had even gone into Grace Period. No idea what happened there, but the loan went back to Current pretty quickly, so I won't complain.
https://www.lendingclub.com/foliofn/loanPerf.action?loan_id=3289900&order_id=5432245¬e_id=19191467
I have seen them actually do a skip trace before the 30 days are up. I would guess it depends on the situation. If LC calls and the borrower says "just try to collect from me" I'm guessing it hastens the process.