Aug
Another Late Lending Club P2P Loan
I mentioned earlier that I had one Lending Club loan fall behind, but the loan recovered in less than 30 days. I now have one Lending Club loan more than 30 days late.
I had my doubts when I bid on it because the person sounded too desperate to get out of town. However, the loan was only for $800 with a monthly payment of just over $27, so I figured that they could handle the payment regardless of moving cities. If a person does not have intentions of paying a loan back, they would certainly ask for more than $800.
The loan details:
Lona Number: 189524
Amount $800
Rate 13.43% (E1)
APR 14.82%
Location Las Vegas, NV
Funding Received $800 (100.00% funded)
Lenders 17 people funded this loan
Loan Status Late (31-120 days)
Loan Submitted on 12/15/07 12:32 PM
Credit Rating E1
Home Ownership RENT
Current Employer Mainstreet Host
Tenure 1 year 3 months
Gross Income $2,167 / month
Debt-to-Income (DTI) 0.00%
Monthly Payment $27.13 / month
Credit Score Range: 640-659
Earliest Credit Line 06/2006
Open Credit Lines 1
Total Credit Lines 1
Revolving Credit Balance $0.00
Revolving Line Utilization 0.00%
Inquiries in the Last 6 Months 2
Accounts Now Delinquent 0
Delinquent Amount $0.00
Delinquencies (Last 2 yrs) 0
Months Since Last Delinquency 0
Public Records On File 0
Months Since Last Record 0
Loan Request Description:
I have lived in Las Vegas for 5 years since 2002 when my parents moved here from New York and Ive been trying to escape ever since but everytime I have the money something comes up and im stuck for another 6 months or so and I just cant take it anymore!!!
PLS HELP!!
This probably won’t be my last loan to be late, but it is disheartening that someone cannot pay a $27 per month payment. Besides this loan, my Lending Club portfolio still seems to be performing well.
Unfortunately, Lending Club has gone the way of Prosper.com with failed collections and lack of information being provided about anything (quiet period an excuse?). It had potential and has failed in my eyes.
So how many late loans do you have? Which loan numbers are they?
Considering that Prosper will let about anyone take a loan to earn the origination fee and Lending Club was rejecting most loans, I hate to say that they have “gone the way of Prosper.” Maybe the quiet period is keeping them from commenting. We’ll see when they come out…
I’ve had quite a few of my 45 LC loans go late, but recently all but two have come back to current status and two have been paid off. So something is happening with collections during this “quiet period.” I had gotten discouraged and stopped checking my portfolio for several weeks, so it was a nice surprise when I checked in again. But my two late loans will enter the “default” category soon.
That is good to hear. Just curious for comparison purposes – What is your average interest rate on all loans?
Mine is 11.23% and I have had two go late so far with one of the two coming back current.
I am in deep doo-doo with my LC loans. In addition to those shown L&D below, I have another $110 that are heading for the late status. That 12.74% shown below is baloney.
Total (185): $4,385.90
In Funding (0) $0.00
Issued & Current (172) $4,174.88
Late 16 – 30 days (0) $0.00
Late 31 – 120 days (7) $186.59
Fully Paid* (5) $0.03
Default (1) $24.40
Composition ( $ )
Based on Outstanding Principal
Details
Weighted Average Rate 12.74%
Expected Monthly Payments $169.67
Payments to Date $1,104.72
Principal $814.10
Interest $290.62
Adjustments Received $0.00
Late Fees Received $0.00
Yes, I agree that the return percentage is useless once your loans start to go late, but it is a reasonable indicator of the risk a person took on. It sounds like you did not take on much more risk than I did, but ended up with a few more bum loans.
“That is good to hear. Just curious for comparison purposes – What is your average interest rate on all loans?”
If my two late-payers don’t default, my portfolio return will be 12.24%
I’m withdrawing cash once a week regardless of the balance ($8 to $20 depending on where I’m at in the cycle) and have not yet decided if I’ll become an active lender once LC is up and running again. My two late loans are #143800 and #148878. They’re late by about $15 right now.
So you seem similar to both me and to evisha except I just happen to have one loan late. I am withdrawing regularly too.
I hope those loans come back for you. Let me know if they do.
No Way to Age Overdue Accounts Now
Is anyone besides me totally frustrated by LC’s recent changes in how they display loan statuses. It is now impossible to see just how overdue an account is. The only thing they are telling us is “30-120 days” late, while listing what the date of “a current payment” would be. What a total waste. Is this a new way for LC to try to get us to not notice just how badly loans are doing?
Real helpful isn’t this?
Status
Loading data…
233631 C Rating Bill Conso $25 C : 10.78% $23.22 $2.43 9/5/08 Late (31-120 days)
233631 C Rating Bill Conso $25 C : 10.78% $23.22 $2.43 9/5/08 Late (31-120 days)
242025 F Rating arts loan $25 F : 16.71% $23.37 $2.64 9/11/08 Late (31-120 days)
242025 F Rating arts loan $25 F : 16.71% $23.37 $2.64 9/11/08 Late (31-120 days)
242025 F Rating arts loan $50 F : 16.71% $46.73 $5.31 9/11/08 Late (31-120 days)
243957 B Rating Clean up c $25 B : 10.39% $21.98 $4.05 9/11/08 Late (31-120 days)
243957 B Rating Clean up c $25 B : 10.39% $21.98 $4.05 9/11/08 Late (31-120 days)
243957 B Rating Clean up c $25 B : 10.39% $21.98 $4.05 9/11/08 Late (31-120 days)
245385 D Rating Consolidat $25 D : 13.87% $22.71 $3.40 9/15/08 Late (31-120 days)
I have not really been bothered by that display, but I only have three loans late. More and more seem to be going late all the time. I also have three loans that have paid off their loans way early so they were nearly a waste, but at least I recovered my principle.
Since my last post (21 August) my two late loans have defaulted and it looks like four more are headed that way. My return has dropped into the 8% range. It’ll go lower quickly now, I predict. I’m nearing the break-even point.
I’ve just discovered that if I click on the “default” or “late” label in the status column I get a run-down on collection efforts – I hadn’t noticed that before. Some of my borrowers have submitted “documents from bankruptcy counsel” and some are listed as presently “negotiating payment.”
It seems I definitely owe an apology to LC and to you folks. I was absolutely wrong about LC not providing detailed info about our loans — seems I just didn’t know where to click to find it.
Very simple thing – just go to your detailed loans page and click on the status of the loan you want to examine. That takes you to a very detailed set of info about specific loans. LC is actually doing everything that Prosper doesn’t do for its lenders. There is a collection log at the bottom of the screen that lets lenders know exactly what is going on in the collections area as well. Bravo LC!
With all my griping about my LC loans, I just updated my XIRR spreadsheet for LC loans and I am actually doing quite well even after I exclude all late loans from my lending total. So come on LC, we know that you are almost squared with the SEC — open up already! Maybe in time for Finovate?
I had never noticed that information before either so it may not be completely obvious where that linked text leads.
for all lending newbies.
the statistics start to get significant once you have over 1000 notes out. everything below you could just have bad luck.
so get 1000 notes for $25 each not like 4 for 100 each…