I started at LC using their portfolio plans to search out my bids for me. Certainly, at both LC and Prosper, I learned quickly how important is to look at each listing, not only by the numbers, but to try and get a feel for borrower’s honesty and credit-worthiness. My late loans at both sites are results of portfolio bidding. So I truly hope that LC will enhance capabilities when they reopen to allow “educated” and experienced bidders to investigate deeper into the listings.

Evelyn, I agree that it sounds scary, but it also sounds similar to what Prosper does on their loans. Most of the stuff you see on the screen there is not verified. The confirmation is spotty of information provided and there is absolutely no way to know if the person will use the loan as described. Well, I guess Fynanz is trying to enforce what the loans are used for, but money is always fungible.

As Debt Kid said, Lending Club likely must show worst case scenario in the SEC filing. The pudding proof is in what they put on their website and what they actually do. I don’t expect them to validate 100% of the details on every loan, but check a few details on each one to know if everything looks kosher. IMO, the most important thing is to verify the person’s identity in some way. That way lenders know at least that the credit score and details are correct. The rest of the stuff is almost always easy to fake.

I am still holding out (like most readers here) that Lending Club will survive!

As for minimum work…well, technological platforms that manage thousands of micro-payments from thousands of different members don’t just invent themselves.

Information supplied by borrower members may be inaccurate.

Borrower members supply a variety of unverified information that is included in the borrower member loan listings on our website. We do not verify this information, and it may be inaccurate. For example, we do not verify a borrower member’s stated social affiliations (such as educational affiliations), home ownership status, job title, employer or tenure, and the information borrower members supply may be inaccurate. Borrower members may misrepresent their intentions for the use of loan proceeds. Unless we have indicated otherwise in a loan listing, we do not verify a borrower member’s stated income. For example, unlike most traditional banks, we do not verify borrower member paystubs, IRS Forms W-2, federal or state income tax returns, bank and savings account balances, retirement account balances, letters from employers, home ownership or rental records, car ownership records or any records related to past bankruptcy and legal proceedings. The identity of borrower members is not revealed to lender members, and lender members also have no ability to obtain or verify borrower member information. Potential lender members may only communicate with borrower members through Lending Club website postings, and then only on an anonymous and unverified basis. If you rely on misleading or unverified information supplied by borrower members in deciding to purchase Notes, you may lose part or all of the purchase price you pay for a Note. Consequently, lender members should not rely on unverified information provided by borrower members.