# Lending Club Experiences **URL:** \ **Category:** In My Humble Opinion\ **Created:** [October 24, 2009, 7:00pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989 "2009-10-24T19:00:38Z")\ **Posts on this page:** 20\ **Page:** 19
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [January 24, 2012, 7:34pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/362 "2012-01-24T19:34:08Z")
> [@amarone](#): > > If you have net short term gains, then the short term loss will offset them. As short term gains are taxed at your marginal rate, then your tax saving will be at your marginal rate. > > If you do not have short term gains but do have long term gains, then you will offset those, thereby just saving the 15% long term capital gains rate. > > If you have no net capital gains, the loss can be used to offset income (up to $3,000), so again you will be saving at your marginal rate. Sounds reasonable. Form 8949 seems to be where it’s handled (that provides backup for Schedule D data). [http://www.irs.gov/formspubs/article/0,,id=242330,00.html](http://www.irs.gov/formspubs/article/0,,id=242330,00.html) And Publication 550 contains some discussion. I haven’t been able to find whether it makes a difference whether the debt is recent or older (i.e. short term vs long term). For the one I had go bad in 2010, it was 6ish months after being issued; the one that went bad in 2011 was written off 18ish months after it was issued. If the 2010 loan would have offset short-term gains, then it didn’t matter which way I treated it, it would have been taxed at my marginal rate regardless. ---
**Author:** ![amarone](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@amarone](https://boards.straightdope.com/u/amarone)\ **Post date:** [January 24, 2012, 7:38pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/363 "2012-01-24T19:38:52Z")
> [@Mama\_Zappa](#): > > I haven’t been able to find whether it makes a difference whether the debt is recent or older (i.e. short term vs long term). For the one I had go bad in 2010, it was 6ish months after being issued; the one that went bad in 2011 was written off 18ish months after it was issued. If the 2010 loan would have offset short-term gains, then it didn’t matter which way I treated it, it would have been taxed at my marginal rate regardless. I read Pub 550 as saying it is a short-term loss no matter how long you had the loan. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [January 24, 2012, 10:02pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/364 "2012-01-24T22:02:46Z")
Just had a surprise! I ran an account activity report (and by the way, why on earth do they have a **captcha** on that???). I sorted it by type - and the first thing there was a 13 cent “collection fee”. So I re-sorted it and found that there was a 36 cent recovery on that same loan. It’s the one that they charged off in October or so when the borrower declared Chapter 7, so I’m surprised they got anything from them. And the loan’s history doesn’t show any action in the collections section, since the chapter 7 was recorded. The 36 cents was the figure agreed on in the original payment plan. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 1, 2012, 7:14pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/365 "2012-02-01T19:14:51Z")
This is screwy as hell: I pulled up my list of notes, and right-clicked on those that are processing right now (i.e. the ones since the 26th, where payments are processing but not yet complete). On every single one of them, the “Upcoming Payments / Next Payment Amount” exactly equals the sum of the remaining payments (e.g. 10 payments left, 80 cents, the window shows 8.00). And the Payment History array at the bottom shows the top row, where it’s “processing”, with an amount equal to that same figure. The first one I noticed, I thought they were doing an early payoff. Then I saw the same thing listed for every other one. I sure hope they’re not actually trying to debit everyone’s account for the full loan balance!!! ---
**Author:** ![Chessic\_Sense](https://avatars.discourse-cdn.com/v4/letter/c/7c8e57/32.png) [@Chessic\_Sense](https://boards.straightdope.com/u/Chessic_Sense)\ **Post date:** [February 1, 2012, 9:03pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/366 "2012-02-01T21:03:28Z")
> [@Mama\_Zappa](#): > > This is screwy as hell: I pulled up my list of notes, and right-clicked on those that are processing right now (i.e. the ones since the 26th, where payments are processing but not yet complete). > > On every single one of them, the “Upcoming Payments / Next Payment Amount” exactly equals the sum of the remaining payments (e.g. 10 payments left, 80 cents, the window shows 8.00). And the Payment History array at the bottom shows the top row, where it’s “processing”, with an amount equal to that same figure. > > The first one I noticed, I thought they were doing an early payoff. Then I saw the same thing listed for every other one. > > I sure hope they’re not actually trying to debit everyone’s account for the full loan balance!!! That’s quite strange, but none of mine are doing that. They’re all for the correct amount. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 1, 2012, 9:07pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/367 "2012-02-01T21:07:02Z")
> [@Chessic\_Sense](#): > > That’s quite strange, but none of mine are doing that. They’re all for the correct amount. Mine are now as well - must have been a temporary glitch of some sort. I’m sorry I didn’t do a screen grab of one of them though. ---
**Author:** ![MsRobyn](https://avatars.discourse-cdn.com/v4/letter/m/90ced4/32.png) [@MsRobyn](https://boards.straightdope.com/u/MsRobyn)\ **Post date:** [February 2, 2012, 2:26am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/368 "2012-02-02T02:26:01Z")
> [@Mama\_Zappa](#): > > Mine are now as well - must have been a temporary glitch of some sort. I’m sorry I didn’t do a screen grab of one of them though. I saw that, too. I got a little freaked because I noticed it with the largest note. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 14, 2012, 11:40pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/369 "2012-02-14T23:40:08Z")
I was playing around with the “browse notes” screen to see what kind of rates fell within particular FICO ranges. By selecting the lowest choice (660-689) I saw that the rates ranged from B3 all the way down to G5. And I stumbled across the most unusual loan title yet: “Cow Purchace” [sic]. Makes me wish I had enough money on hand to fund that loan, just for the novelty. OK, it’s an E5 and I stick to A-C with the occasional D, but still - I want my piece of that cow! (40 of them, actually - at 19,000, I guess a cow costs 475 dollars). :D. ---
**Author:** ![Onomatopoeia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/onomatopoeia/32/4145_2.png) [@Onomatopoeia](https://boards.straightdope.com/u/Onomatopoeia)\ **Post date:** [February 15, 2012, 5:12am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/370 "2012-02-15T05:12:46Z")
As of today, my annualized return rate is: 9.20%, up from 8.92% from this time last month. I’m currently up 5 loans from last month for a total of 55. My current loan composition is as follows: A: 11% (6 loans) B: 34.5% (19 loans) C: 34.5% (19 loans) D: 18% (10 loans) E: 2% (1 loan) F: 0% G: 0% ---
**Author:** ![Onomatopoeia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/onomatopoeia/32/4145_2.png) [@Onomatopoeia](https://boards.straightdope.com/u/Onomatopoeia)\ **Post date:** [February 16, 2012, 12:11am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/371 "2012-02-16T00:11:37Z")
I logged into my account a few minutes ago and saw $37.57 sitting in Available Cash, when just yesterday it was $1.42. A quick check of my notes and, sure enough, another loan was paid off early, sometime between last night and today, and after only 3 payments. Crud. ☹ ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 16, 2012, 1:46am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/372 "2012-02-16T01:46:40Z")
> [@Onomatopoeia](#): > > I logged into my account a few minutes ago and saw $37.57 sitting in Available Cash, when just yesterday it was $1.42. A quick check of my notes and, sure enough, another loan was paid off early, sometime between last night and today, and after only 3 payments. Crud. ☹ Ouch - though at least you got more in interest than the fee from the payoff, right? I remember the one where you lost money! ---
**Author:** ![Onomatopoeia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/onomatopoeia/32/4145_2.png) [@Onomatopoeia](https://boards.straightdope.com/u/Onomatopoeia)\ **Post date:** [February 16, 2012, 4:33pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/373 "2012-02-16T16:33:06Z")
> [@Mama\_Zappa](#): > > Ouch - though at least you got more in interest than the fee from the payoff, right? I remember the one where you lost money! My net profit on that loan is a whopping $1.06, so no loss, but it’s also not the approximately $18 I would have earned had he not paid it off early. Last night, I took the proceeds from the early pay-off and invested in another loan. Today, the amount in the Available Cash column is $9.24 and my Net Annualized Return is 9.24%. 🙂 It doesn’t mean anything, but I found it amusing nonetheless. ---
**Author:** ![drachillix](https://avatars.discourse-cdn.com/v4/letter/d/48db29/32.png) [@drachillix](https://boards.straightdope.com/u/drachillix)\ **Post date:** [February 16, 2012, 5:27pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/374 "2012-02-16T17:27:56Z")
> [@Onomatopoeia](#): > > My net profit on that loan is a whopping $1.06, so no loss, but it’s also not the approximately $18 I would have earned had he not paid it off early. I don’t think of it as “would have earned” as I just reinvest and move on. As I mentioned before, this has been very very educational. I could see where a lending institution would have the mindset of “ugh, now we have to find someone else to loan money to so we can make money” In my case 65 active on time notes, 2 in funding, had a few payoffs lately at least they were all profitable. 6.64%, still 2 running late and the two old charge offs. My method lately has been seeking high credit rating (750+) B’s and C’s so far they look good. I toss in an A once in a while to add some more stability. ---
**Author:** ![Onomatopoeia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/onomatopoeia/32/4145_2.png) [@Onomatopoeia](https://boards.straightdope.com/u/Onomatopoeia)\ **Post date:** [February 16, 2012, 7:02pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/375 "2012-02-16T19:02:29Z")
> [@drachillix](#): > > I don’t think of it as “would have earned” as I just reinvest and move on. Hey, those few cents of interest I’m not earning for the period of time the payoff amount is sitting in Available Cash are important. 😉 ---
**Author:** ![MannyL](https://avatars.discourse-cdn.com/v4/letter/m/ba8739/32.png) [@MannyL](https://boards.straightdope.com/u/MannyL)\ **Post date:** [February 18, 2012, 1:46am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/376 "2012-02-18T01:46:28Z")
I think I will never be successful art Lending Club. I had four loans where I funded each for $25.00 Three are still paying one charged off so my Net Annualized Return is a NEGATIVE 14.78% ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 18, 2012, 2:07am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/377 "2012-02-18T02:07:54Z")
> [@MannyL](#): > > I think I will never be successful art Lending Club. I had four loans where I funded each for $25.00 > > Three are still paying one charged off so my Net Annualized Return is a NEGATIVE 14.78% Ouch. Though with such a small sample size, a single chargeoff guarantees long-term losses - if you collect a total of, say, 31 dollars from each of the 3, that’s 93 dollars in payback from your 100 dollar investment. Not that a larger profile is a guarantee of profits by any means… you could still have 1/4 of your loans go south. I keep somehow expecting that to happen with my massive (hah) 68+ loan profile. ---
**Author:** ![amarone](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@amarone](https://boards.straightdope.com/u/amarone)\ **Post date:** [February 18, 2012, 1:07pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/378 "2012-02-18T13:07:54Z")
> [@Mama\_Zappa](#): > > Not that a larger profile is a guarantee of profits by any means… The home page is currently claiming that everyone with 800 notes or more has a positive return. So I only need another 750+ I have struggled back into positive territory, at 0.16% However, I have another one going south that will soon put me negative again (an A4 loan, no less). I’ve just done my taxes and claimed my $73 of charged off loans as capital losses, so when I allow for the tax benefit of that, I am just about breaking even on the deal to date. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [February 20, 2012, 3:25pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/379 "2012-02-20T15:25:27Z")
> [@amarone](#): > > … > > I’ve just done my taxes and claimed my $73 of charged off loans as capital losses, … I was lazy about that this year. Since I didn’t have any capital gains to offset, I just subtracted my 14 bucks from the interest income. Otherwise I’d have had to figure out how to record the 23 cents in recovery from that same loan (36 cents minus 13 cents collections fee). Too damn much trouble for 23 cents, LOL. ---
**Author:** ![brown520](https://avatars.discourse-cdn.com/v4/letter/b/ea666f/32.png) [@brown520](https://boards.straightdope.com/u/brown520)\ **Post date:** [March 7, 2012, 10:24pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/380 "2012-03-07T22:24:47Z")
Man, I wish I had found this board earlier. I joined LC on 2/13 and I’m putting my whopping $25 in every week. Up to 4 notes now, although one just sold (for $20.00; I purchased it on Monday for $18.50). Woohoo, a profit! I do wonder about some of the notes listed on Folio. Do people really believe someone will want to buy a note for $10 that only has $1.03 in principal left? Do people just put up some notes at ridiculous prices just for grins, hoping someone will buy? Best of luck to all of you. It’s been a great read! ---
**Author:** ![Onomatopoeia](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/onomatopoeia/32/4145_2.png) [@Onomatopoeia](https://boards.straightdope.com/u/Onomatopoeia)\ **Post date:** [March 8, 2012, 2:39am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/381 "2012-03-08T02:39:13Z")
The heck. Another loan paid off early. I freaking hate A loans!!! Total Investment: $24 Total Payments Received: $23.99 [Previous page](https://boards.straightdope.com/t/lending-club-experiences/514989.md?page=18) [Next page](https://boards.straightdope.com/t/lending-club-experiences/514989.md?page=20)