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I planned to blog in commiseration with Tom about being denied for a loan. Tom was denied for a Zopa loan and I was rejected for a GE Money Bank credit card through Amazon. GE Money Bank took 10 days to tell me that they could not verify my identity despite the promise on Amazon.com of a 30 second approval process. I have a 800 credit score and provided all information including a phone number and they could not verify my identity. They did not bother calling to verify and customer service told me the process is computer automated. Ten days for a computer program to return results? I doubt it…

Sorry /Rant Off
I’ll skip the remainder of my planned rant about Amazon’s relationship with GE Money Bank Read the rest of this entry »

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: Read the rest of this entry »

According to NetBanker, Lending Club has a $500,000 per month burn rate. That is lower than my earlier estimation my estimate of the monthly cash burn rate delta due to the quiet period. As some of the commentators on my site mentioned, it seems to have been reasonably easy for Lending Club to find other lending institutions to extend the loans to cover the gap during the quiet period. The error in my estimation was further compounded by the Lending Club loan volume significantly dropping during the Quiet Period despite the fact that Lending Club offered to keep funding all loans meeting the requirements.

Since I do not want to read through the entire filing, I will defer to NetBanker… Per NetBanker’s analysis of the S-1, the S-1 filed includes among other things the following interesting pieces of information:

$6.4 million of the loans made through the platform Read the rest of this entry »

In Lending Club’s S-1 filing in relation to the quiet period, Lending Club listed many risks. (See the S-1). The risks listed are similar, but not exactly like the financial risks Lending Club earlier posted on their website.

The following risk list Read the rest of this entry »

Lending Club just sent an update via email about their latest filing with the SEC. Unfortunately, they are still in a quiet period so they do not say much about the ongoing outlook, but it seems they may be one step closer to completing the requirements to return to P2P lending. So maybe Lending Club will survive.

The filing was posted to the SEC website at 5:30 PM eastern time toiday (Friday June 20th) and I am writing this less than an hour later.

Link to the Lending Club filings documents. I have not had the chance to read through the whole filing yet but I did Read the rest of this entry »

Congratulations to Lending Club for winning a Webby Award. Other recipients included David Byrne, will.i.am of the Blackeyed Peas, Stephen Colbert, Lorne Michaels, Michel Gondry, and Tim and Eric. Many, many other organizations won awards including the Peace Corps which won a Webby award for a government website.

Lending Cub gave a tongue-in-cheek acceptance speech for their 2008 Webby award, but it seems to have been the only words available to a company under the a SEC imposed quiet period. That is the speech was completely silent: Read the rest of this entry »

A few months ago, I posted a poll asking readers if Lending Club would survive the quiet period. Readers believe by a large margin (31 votes to 11 votes) that Lending Club will survive the quiet period.

I hope that Lending Club will survive as is. I like the P2P lending platform that they built and so far my Lending Club P2P loans are still performing great. Although, I do have my fingers crossed on the loan that was late temporarily.

More interesting than the results are some of the comments received Read the rest of this entry »

While looking up the details on the loan that I had reported as late, I noticed the Lending Club Promissory note text. I thought I would capture this for comparison purposes in case it changes after the quiet period.

The text “goodkarmaplease” in the Promissory note intrigued me so I searched for that on google, but only 11 pages show up in the search results (114 pages if you choose to make similar pages appear in the search results.) None of the search results have anything to do with Lending Club. In fact, goodkarmaplease seems to be someone’s YouTube user ID.

The Lending Club Promissory Note text as of June 8, 2008 at 11PM central time: Read the rest of this entry »

Surprisingly, my Lending Club late loan is now current again. That puts me back to 100% current loans at an average interest rate of 11.23%. Thank you to the borrower for catching back up on your payments.

Sorry for being nearly as quiet as Lending Club lately. A quick update on my Lending Club portfolio is in order. Most importantly, I had my first late loan. It is only 16-30 days late, but as most P2P lenders know, once a P2P loan is delinquent there only a small probability of recovery.

Before the quiet period started, I had participated in 51 loans for a total of $1,250.17. Two loans are fully paid, 48 issued and current, and one late (details below). The weighted average interest rate Read the rest of this entry »