HollowOak asks: “How far behind is Prosper? Or do they get kudos for having started the SEC filing months ago?”
Lazy Man and Money is calling Lending Club dead:
I have been worked for a number of start-up companies and they had one thing in common – they are extremely fragile. A high percentage of new companies fail.. Iâ€™ve talked to a few other Lending Club members… and they said they are gone and never coming back. They feel their trust has been violated. With each day that Lending Club canâ€™t or doesnâ€™t say anything to justify this inactivity, the more trust is lost. I might be blowing this out of proportion, but Iâ€™d rather err to the side of being conservative until I have reason to believe otherwise.
LazyMan is correct that their inability to communicate this issue over the next few months (?) is going to hurt Lending Club. It was communicated poorly, so I can understand why many people must assume the worst.
ProsperousLand wondered why he took yesterday off in his catch up post today about Lending Club halting new lenders. Mike had posted previously about Prosper filing with the SEC. RateLadder also posted information on Prosper’s SEC filing. The key line from my perspective from the Prosper filing is:
Prosper intends to establish and maintain a secondary trading market online auction platform, or Resale Platform, pursuant to which lenders may seek to transfer borrower notes to other Prosper registered lenders.
Rate Ladder updated his posting on the quiet period notice to say that he no longer thinks that the filing is to create a secondary market. I speculate that he based this change on a one line quote at tech crunch attributed to a lawyer. I am guessing that she is probably just speculating the reasons like the rest of the world because there can be multiple reasons for a quiet period, but could she be right?
Jeff is feeling better after having the unfortunate event of having money arrive to Lending Club just after the notice came out.
Dough Roller also speculated about a secondary market.
Penny Saved posted “So much for Lending Club“:
I guess I will have to replace their banner on my sidebar with a gigantic â€œXâ€… Prosper was able to do this same process without having to stop lenders so … I would say that Lending Club has something else going on here… The reasons I liked them over Prosper were numerous, but I suppose I shall have to look into Prosper now.
My take is that chances are good this will kill them as a P2P lender because it is hard enough to build loyalty…
By the way, I was incorrect in my comment at the Amatureist Financial Journey post. The first comment said that they were turning in Lending Club to the BBB and wanted their money back. I don’t think receiving a refund on loans you already made is possible. Also, it would not be a good idea for Lending Club to do this because if word got out it could cause a run on the bank. Rob Garcia did respond and mentioned that he cannot comment on the filing or future speculation but that he could follow up on the commenter’s issue which would essentially be a customer service issue. In hindsight this seems obvious that Lending Club should be able to respond to customer service issues since a SEC quiet period is more about investors and investing – thus the hold in the lending side of the business.