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LendingClub isn't the counterparty; even if they went bankrupt there would be procedures to move the loans to a different servicer.
by fiatmoney 10y ago
LendingClub isn't the counterparty; even if they went bankrupt there would be procedures to move the loans to a different servicer.
- akg_67 10y agoNope. 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.
- deleted 10y ago[deleted]
- zrail 10y agoThis 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.