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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 ge

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.

toomuchtodo 10y ago
I wouldn't too much about that. The new noteholder would still need to honor the provisions of the original agreement, and you could involve the Consumer Financial Protection Bureau if you ran into problems with the servicing of the note. EDIT: I rescind my statement. If LC fails, both lenders and investors are going to have a bad time. https://www.reddit.com/r/investing/comments/4jqaal/lending_club_gets_doj_subpoena_lc_10_premkt/d38qx3y https://www.reddit.com/r/investing/comments/4jqaal/lending_c... "From their prospectus: Our arrangements for backup servicing are limited. If we fail to maintain operations, you will experience a delay and increased cost in respect of your expected principal and interest payments on the Notes, and we may be unable to collect and process repayments from borrowers. We have made arrangements for only limited backup servicing. If our platform were to fail or we became insolvent, we would attempt to transfer our Loan servicing obligations to our third-party back-up servicer. There can be no assurance that this back-up servicer will be able to adequately perform the servicing of the outstanding Loan. If this back-up servicer assumes the servicing of the Loan, the back-up servicer will impose additional servicing fees, reducing the amounts available for payments on the Notes. Additionally, transferring these servicing obligations to our back-up servicer may result in delays in the processing and recovery of information with respect to amounts owed on the Loan or, if our platform becomes inoperable, may prevent us from servicing the Loan and making principal and interest payments on the Notes. If our back-up servicer is not able to service the Loan effectively, investors’ ability to receive principal and interest payments on their Notes may be substantially impaired."
dawhizkid 10y ago
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.
- oneloop 10y ago
  I'd also like an answer to this.
  - johnward 10y ago
    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.

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.

toomuchtodo 10y ago

I wouldn't too much about that. The new noteholder would still need to honor the provisions of the original agreement, and you could involve the Consumer Financial Protection Bureau if you ran into problems with the servicing of the note. EDIT: I rescind my statement. If LC fails, both lenders and investors are going to have a bad time. https://www.reddit.com/r/investing/comments/4jqaal/lending_club_gets_doj_subpoena_lc_10_premkt/d38qx3y https://www.reddit.com/r/investing/comments/4jqaal/lending_c... "From their prospectus: Our arrangements for backup servicing are limited. If we fail to maintain operations, you will experience a delay and increased cost in respect of your expected principal and interest payments on the Notes, and we may be unable to collect and process repayments from borrowers. We have made arrangements for only limited backup servicing. If our platform were to fail or we became insolvent, we would attempt to transfer our Loan servicing obligations to our third-party back-up servicer. There can be no assurance that this back-up servicer will be able to adequately perform the servicing of the outstanding Loan. If this back-up servicer assumes the servicing of the Loan, the back-up servicer will impose additional servicing fees, reducing the amounts available for payments on the Notes. Additionally, transferring these servicing obligations to our back-up servicer may result in delays in the processing and recovery of information with respect to amounts owed on the Loan or, if our platform becomes inoperable, may prevent us from servicing the Loan and making principal and interest payments on the Notes. If our back-up servicer is not able to service the Loan effectively, investors’ ability to receive principal and interest payments on their Notes may be substantially impaired."

dawhizkid 10y ago

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.

oneloop 10y ago
I'd also like an answer to this.
- johnward 10y ago
  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.