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Collections when the Notes platform is discontinued

Started by Peter, October 17, 2020, 11:00:00 PM

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I haven't been here in a while, and I took a quick look around to help ensure I wasn't duplicating threads, but does anyone know what note collections will look like now that the announcement and subsequent halting of the Notes platform is here?

If I were a borrower, I would see this as a green-light to default. Has Lending Club said anything about this? Do they have a commitment to maintain their ongoing collections activity?

I'll admit their collections never seemed that impressive in the first place, but my default rates have taken a turn for the worse recently.

I know I look like Scroogey McScroogeface in the face of the pandemic and unemployment, but I still have a big junk of my retirement with Lending Club IRAs that haven't wound down yet.



I expect that collections will continue as before.

LC is NOT eliminating their loan program.  What they are eliminating is RETAIL LENDERS, ie you and me.  For several years, most of the lenders on LC have been institutions such as banks or hedge funds.  LC services the loans for these customers, so loan servicing, collections, etc should continue.  The people doing these functions probably won't even notice that the retail investors are gone.


The difference, of course, is that LC will keep all this money and not compensate us in any way once our accounts are closed. It's not a lot of money, but looking at my account it looks like it adds up to a couple hundred bucks a year.

It's a cash grab by LC verging on theft. It may be only a little bit of money for each of us, but added together I'm sure it's significant.


That's creative. Yes, I could continue paying fees that are higher than the money coming in, and choose to give LC/Strata even more of my money and claim that I'm not being forced.


I think that Lending Club collections are already getting less emphasis. I checked the detail pages on 3 past due notes and none of these had any new collection notes.


I am trying to figure out when my LC account winds down.

Fortunately when they announced folio was closing I decided to get out, and started selling all my notes. I tried to sell everything with >6m left, and succeeded in unloading most of it. I'm left with only six notes that mature >6m from now, which were hardship loans I was unable to trade. The rest of my portfolio is going to wind down to zero in the next 5-6 months.

However, I see in my activity that recoveries are still pretty significant. I am wondering for how long?

To use round numbers, I'm trying to estimate this: If I had $1000 worth of notes go bad in year X, how many recoveries do I expect in year X+1, X+2, X+3, etc.


My guess, and it's just a guess, is that the recoveries will be about 95% complete about a year after your last loan pays out.

NEW LOANS:   | 8033.eth 0.349 Ξ | 5033.eth 0.349 Ξ | scyther.eth 0.800 Ξ | ALL