Sunday, July 12, 2009

First Lending Club payment due today

The first payment on my first Lending Club investment loan is due today. Yes, today in Sunday, so I honestly did not expect any activity until the next business day, but I signed in to check anyway.

As I expected, I did not see any payment credited, yet.

Worse, I see that the accrued interest for that note has been reset to zero. That certainly looks scary, but I have a high degree of confidence that it is just that payment is a milti-step process and I am watching the process before it has completed.

The Account Activity screen says "There was no activity during this period." It would be better if it explicitly said that a payment is pending and that accrued interest was reset to zero pending payment.

My hunch before today was that it might take a day or two or three between the actual due date and the appearance of the payment in my account.

The accrued interest column probably simply means the amount of accrued interest since the most recent payment date. Personally, I think it should be the accrued interest since the last credited payment.

After all, if everything is going smoothly, why chould the value of my account decline on a payment due date? That makes no sense. Maybe they should have a pending payment column so that the account value is correct.

Or, they could have the Status column say "Payment Pending" and leave the accrued interest column showing the total accrued interest since the last credited payment.

Flip a coin whether the payment will actually be credited by tomorrow morning. Or maybe it hits tomorrow evening and gets credited Tuesday morning.

Mostly I am watching this first payment like a hawk just to understand the detailed process and to set my expectations for the future. I do not mind if it takes another day or two to credit payments, but I do want to know when it will happen.

I'll watch the second payment equally carefully since it is due during a weekday, Friday.

I do not know when Lending Club actually submits the ACH debit request to the borrower's bank. Nor do I know how long it takes for the ACH debit to credit Lending Club's bank for that debit amount.

-- Jack Krupansky

2 Comments:

At 6:19 AM EST , Blogger Dave said...

This is my first month and so far, I've not received any loan payments back. So discouraged by Lending Club. I have 10 loans out and the payments were to begin coming in on November 2nd (3 due, 1 due on 3rd, 3 due on 4th, 2 due on 5th and 1 due today). What does this mean?? They all can't be going to default, can they??

 
At 6:27 AM EST , Anonymous Jack Krupansky said...

Relax!

It could take up to a week before the payments actually get credited to your cash balance.

The payment date is really the date that the ACH transfer is initiated by Lending Club to debit the borrower's bank account.

-- Jack Krupansky

 

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