Comments on: Lending Club Update – August 2009

By: DesertStamper

DesertStamper — Thu, 15 Oct 2009 18:14:34 +0000

Thanks for the the “Snippy” advice!

By: Lazy Man

Lazy Man — Thu, 15 Oct 2009 18:07:28 +0000

My non-tradable notes are pretty old, but then again, I was pretty conservative. I’m getting even more conservative with my more recent loans.

I use a program for Windows called Snippy (http://www.bhelpuri.net/Snippy/) to take a picture of my screen and save it as an image file.

By: DesertStamper

DesertStamper — Thu, 15 Oct 2009 17:28:03 +0000

Thanks for sharing your results, I look forward to following your progress. I just began to fund an account last month but have slowed down due to the high default rates when you look at the older loans. It’s encouraging to see your results.

And for the life of me I can’t figure out how you copy that summary page to your blog. Can you explain to a computer dummy?

By: Lazy Man

Lazy Man — Mon, 21 Sep 2009 03:50:10 +0000

I think it’s state regulations in loaning money to people. Sorry.

By: SB

SB — Mon, 21 Sep 2009 03:07:05 +0000

lendingclub.com and prosper.com does not allow MD residents to participate as investors. Any idea why and do you know any other websites that do?
Thanks!

By: RobG

RobG — Thu, 17 Sep 2009 00:07:35 +0000

@discoruth @LazyMan: these investor financial suitability requirements have been in place since our notes are offered by prospectus filed with the SEC

RobG,
product guy @LendingClub

By: Lazy Man

Lazy Man — Fri, 11 Sep 2009 01:11:02 +0000

Pam,

I was going to address this in a future post. I’ve talked with Lending Club about this. For now, let’s just say that they are very regulated which has a large impact on what they put as the “rate of return.”

Discoruth,

I’ll have to look into that. When I signed up for Lending Club that was not the case.

By: discoruth

discoruth — Thu, 10 Sep 2009 23:54:14 +0000

I was going to sign up for Lending Club, but I came across this bit in the “Investor Agreement” I have to agree to:

“6. Your Financial Suitability Acknowledgments, Representations and Warranties. You represent and warrant that you satisfy the applicable minimum financial suitability standards and maximum investment limits, as set forth in the following sentence (or as set forth on the Site with regard to residents of the state in which you reside), and you agree to provide any additional documentation reasonably requested by us, as may be required by the securities administrators of certain states, to confirm that you meet such minimum financial suitability standards and maximum investment limits. You understand and confirm that you (a) have an annual gross income of at least $70,000 and a net worth (exclusive of home, home furnishings and automobile) of at least $70,000; or (b) have a net worth (determined with the same exclusions) of at least $250,000. In addition, you agree that you will not purchase Notes in an amount in excess of 10% of your net worth, determined exclusive of home, home furnishings and automobile.”

I make less than $70,000 per year and my net worth is less than $250,000.

By: Pam

Pam — Thu, 10 Sep 2009 23:06:23 +0000

When I check my Lending Club account it still projects my original rate of return, although 2 accounts are well in arrears–or not so well I suppose. This really distorts the rate of return. More disappointing, these were A loans. Be careful.

By: Lazy Man

Lazy Man — Thu, 10 Sep 2009 20:07:28 +0000

I thought about not disclosing it, but I didn’t want people to find out and thinking I was hiding something from them.

Also, I opened up my Lending Club account for all to see and digest. Either you agree with me that it’s pretty good and could be a good way to diversify your income (in which case, you don’t care if I’m getting compensated), or you don’t agree with me (in which case you won’t sign up and it doesn’t matter if I disclose that Lending Club is giving me monkey butler*).

* Lending Club is not compensating me with a monkey butler.

By: David@DINKS Finance

David@DINKS Finance — Thu, 10 Sep 2009 17:24:14 +0000

While I’m sure people appreciate your affiliate link disclosure. I would say it’s not necessary. I wouldn’t do it in the future if I were you, because it causes hesitation and probably less profit.

But it’s your site, not mine : )

By: Dave Lavinsky

Dave Lavinsky — Thu, 10 Sep 2009 13:15:26 +0000

Good post. A lot of folks seem to prefer Lending Club over Prosper.

For those who want to learn more, I recently interviewed Lending Club’s CEO Renaud Laplanche to answer a bunch of questions that most people have about Lending Club – you can listen to that interview at http://www.growthink.com/content/interview-renaud-laplanche-founder-ceo-lending-club