Comments on: Lending Club: One of My Loans Defaulted

By: Yolan

Yolan — Wed, 01 Sep 2010 10:20:43 +0000

Then again, someone who has defaulted for so long is unlikely to just show up and say,”Sorry, here’s your money”.

By: Yolan

Yolan — Wed, 01 Sep 2010 10:13:29 +0000

I hope you get your money back soon.
The screen shot is actually helpful. Lets others know good steps to follow in recovering money.

By: Financial Samurai

Financial Samurai — Sat, 10 Oct 2009 04:45:29 +0000

Sounds good Stephanie. I feel that there are a lot of other blogs out there pushing Lending Club… and I am very wary that Lending Club has gone out and decided to pay publishers money to hock their site and victimizing some folks.

Perhaps in 1 year, I’ll revisit and see how things go.

By: Stephanie

Stephanie — Fri, 09 Oct 2009 12:36:23 +0000

I’ll be honest – I’m really not at liberty to make that call. The problem with peer-to-peer lending is that it’s just too new – we don’t have “historical data” on it. That’s not a knock against the idea or against Lending Club, that’s just the way it is. So, there’s no way for me to say “You’ll be fine as long as you put X percent in grade-A loans, Y-percent in grade-B…” or something like that.

But if really is just like any other investment – if it were me, I’d do some heavy research along with some soul-searching. I can’t even say off the bat whether I would personally put my money into it if I have $20k-$50k to do it. It would take some time for me to make that decision.

By: Financial Samurai

Financial Samurai — Fri, 09 Oct 2009 04:51:22 +0000

Hi Steph – Thanks for your thoughts. What about more money, such as $20-$50,000? Is this just too much to risk, if all your savings retirement etc stuff is in place?

I would love to get 10%/annum returns, but I also don’t want a binary goose egg!

By: Stephanie

Stephanie — Thu, 08 Oct 2009 18:44:42 +0000

It depends on what you want to give out of it, and how much money you want to put into it. Lending Club is one of those “I’ve maxed out my retirement plans, my emergency fund is in place, and I’m on track with my savings goals… now what?” things. No matter what, I’d say “diversify!” There’s a reason I picked one B-grade and one D-grade loan, instead of just finding one loan to put all $50 into.

I still think it’s a great service and that they run it very well. Obviously there’s risk, but that’s how investing works.

By: Financial Samurai

Financial Samurai — Thu, 08 Oct 2009 05:14:33 +0000

Hey Stephanie – Sorry to hear about this. Given your experience, would you recommend a potential new lender like me lend?

Your deadbeat borrower could still decide to pay, so don’t give up hope!

By: Ibrahim | ZenCollegeLife.com

Ibrahim | ZenCollegeLife.com — Wed, 07 Oct 2009 23:43:43 +0000

I was afraid that this might happen. Are there repercussions in place that punish the non-payer?

By: Stephanie

Stephanie — Wed, 07 Oct 2009 19:46:00 +0000

There were five on-time payments before they just stopped paying. It came as quite a shock!

By: Miss M

Miss M — Wed, 07 Oct 2009 19:22:50 +0000

That sucks! I’ve only been with Lending Club a few months and have about 25 loans right now, so far all are current but I know it’s just a matter of time before someone defaults. Had they made many payments before defaulting?