Its also worth noting that they did things like, cancel their internship program. Things must be very serious.
Lots of money no longer willing to chase returns through subprime investments.
LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
31–40 of 42 posts
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#32I've used Lending Club on both sides of the marketplace (Lender and Borrower) and I really love the platform. So much easier than dealing with banks and the rates have always been fair. It's a shame they've made these missteps, but ultimately I think they'll come out stronger.
Aren't they being accused of misrepresenting over $20 million worth of loans to institutional investors? It sounds like they are dealing with some serious fraud allegations. How will they survive? It looks to me like the company is imploding right now.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#33I've used Lending Club on both sides of the marketplace (Lender and Borrower) and I really love the platform. So much easier than dealing with banks and the rates have always been fair. It's a shame they've made these missteps, but ultimately I think they'll come out stronger.
Aren't they being accused of misrepresenting over $20 million worth of loans to institutional investors? It sounds like they are dealing with some serious fraud allegations. How will they survive? It looks to me like the company is imploding right now.
They control 5 billion. So 20 million is a lot but in those terms, a small misstep.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#34Earlier quoted context omitted.
LendingClub isn't the counterparty; even if they went bankrupt there would be procedures to move the loans to a different servicer.
Nope. If you are retail lender, you are actually lending to Lending Club and not to borrowers. With this structure, you will be an unsecured creditor to Lending Club in the event of LC going out of business. I like to call it that you are buying Corporate Junk Bond from Lending Club with variable yield.
This is correct. If you have money with Lending Club or any of these other unsecured P2P loan companies you should understand exactly what you've invested in.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#35I've used Lending Club on both sides of the marketplace (Lender and Borrower) and I really love the platform. So much easier than dealing with banks and the rates have always been fair. It's a shame they've made these missteps, but ultimately I think they'll come out stronger.
Aren't they being accused of misrepresenting over $20 million worth of loans to institutional investors? It sounds like they are dealing with some serious fraud allegations. How will they survive? It looks to me like the company is imploding right now.
As with anything financial, there's always a lot of grey. Litigation will get drug out, a fine will be levied, business will resume. DOJ probe is a CYA move by the feds.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#36I've used Lending Club on both sides of the marketplace (Lender and Borrower) and I really love the platform. So much easier than dealing with banks and the rates have always been fair. It's a shame they've made these missteps, but ultimately I think they'll come out stronger.
Aren't they being accused of misrepresenting over $20 million worth of loans to institutional investors? It sounds like they are dealing with some serious fraud allegations. How will they survive? It looks to me like the company is imploding right now.
No, it was 3 million. They originate over $100 million per month in loans so it was a very small amount and the data they fudged was not related to the credit quality. The only reason to be concerned is if you believe this is only the tip of the iceberg. Those fears were put to rest yesterday though when the new CEO released a letter stating that they engaged an accounting firm to audit their entire portfolio and found no additional discrepancies.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#37Earlier quoted context omitted.
I use it as a borrower. I was able to get better rates than banks to do some consolidation. I like the platform from this side. I just worry who my loan will get sold to if they tank.
Why would you worry about who your loan gets sold to as a borrower? If I were an investor on the platform I would be much more worried.
I'd also like an answer to this.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#38Earlier quoted context omitted.
Why would you worry about who your loan gets sold to as a borrower? If I were an investor on the platform I would be much more worried.
I'd also like an answer to this.
I guess I really don't. According to the comment above the terms can't change. So long as the terms stay the same and I can pay online it wouldn't really impact me.
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#39This isn't surprising. The entire personal loan/payday loan industry is terribly corrupt. This only comes a few days after Google banned ads for payday loan companies. I think regulation is coming soon to the alternative-loan industry as a whole. In regards to the LendingClub specifically, I can't speak for much since the details in the article are lacking, but it appears that there was some kind of falsification or…
Comparing LendingClub to a payday loan is dishonest. A Pay day loan company charges interest that amounts to an APR of 100%+ [0]. LendingClub's rates range from 5% - 30% [1] and the overwhelming majority of the loans they issue are on the lower end of that scale. Credit cards charge interest rates of 12% - 30% for comparison. Here is a better article about the issue that caused the resignation of the CEO. http://www.…
Do you have references for that last claim?
Re: LendingClub Loan Buyers Retreat After Shakeup; U.S. Probes
#40Earlier quoted context omitted.
Aren't they being accused of misrepresenting over $20 million worth of loans to institutional investors? It sounds like they are dealing with some serious fraud allegations. How will they survive? It looks to me like the company is imploding right now.
No, it was 3 million. They originate over $100 million per month in loans so it was a very small amount and the data they fudged was not related to the credit quality. The only reason to be concerned is if you believe this is only the tip of the iceberg. Those fears were put to rest yesterday though when the new CEO released a letter stating that they engaged an accounting firm to audit their entire portfolio and fou…
Ah, some papers are reporting that New York is interested in $22 million in loans to one specific client. 3 million sounds a lot less troublesome.