# 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:** 36
**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 10, 2014, 5:29am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/702 "2014-02-10T05:29:07Z")
> [@wguy123](#): > > Ugh - tax time. Brutal with folio sales. There must be an easier way. I’ll have to go through and read the info from last year. I can’t have to enter all of these :eek: Last year I massaged the pdf information and pasted it into a spreadsheet. After some tweaking I got it to format into the right format for TurboTax to import it. It was a huge pain - mainly just finding the damn information I needed to set up the output. They do NOT make it easy to find. A sample of the file I created last year is below. Basically you have to put the header info (the D is Date Exported and can be anything, ditto the source “microsoft Excel” - you need the A in front of that), and it looks like the lines that repeat are from the TD line through the line with just a caret. V042 Amicrosoft Excel D02/01/2013 ^ TD N713 C1 L1 PLending Club Note 112233 D11/27/2009 D09/13/2012 $5.18 $5.25 ^ TD N713 C1 L1 PLending Club Note 223344 D12/07/2009 D09/13/2012 $3.43 $3.51 ^ Oooh - and they lowered Prime to 5,000 now. I’m still well below that. I did just get word the other day that I can continue to invest (my husband works for a CPA firm and there are independence requirements, but they don’t apply in our situation). Got two loans that are threatening to go bad as well :(. ---
**Author:** ![amarone](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@amarone](https://boards.straightdope.com/u/amarone)\ **Post date:** [February 10, 2014, 12:22pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/703 "2014-02-10T12:22:09Z")
I got my tax document and was surprised to see they are reporting a capital gain for me (I don’t trade notes). It turns out LC has managed to recover something from many of the defaulted notes, and that recovery comes back as a capital gain, presumably because the whole note was written down to zero when it was charged off. I am not entering them separately on my tax return. I have put the total amount on one line with a date of “various”. Note the following from the instructions to Schedule D for date acquired: > [@](#): > > If you sold a block of stock (or similar property) > that was acquired through several different > purchases, you may report the sale on > one line and write “VARIOUS” in column (b). > However, you still must report the short-term > gain or (loss) on the sale in Part I and the > long-term gain or (loss) in Part II. Also, enter > the appropriate amount in column (g). It doesn’t say the same thing for “date sold”, but I’m going with it anyway. I doubt the IRS will spend much time worrying about a gain of $29.49. ---
**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:** [March 7, 2014, 5:05am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/704 "2014-03-07T05:05:14Z")
Tax Time! For anyone who does more than a handful of purchases / sales, the 1099-B portion is hellacious. I found this site ([EasyTXF - Easily Convert CSV Files to TurboTax TXF](http://www.easytxf.com/upload#create)) which offers a free csv - to - txf format converter so you can import into Turbo Tax. Of course you have to first copy / paste that PDF info into a spreadsheet, re-order the columns, and save as comma-separated. And it codes the .txf file as if basis were being reported to the IRS, but that’s easily handled: do a search-and-replace and change N323 to N713, and change N321 to N711. ---
**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:** [March 7, 2014, 5:06am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/705 "2014-03-07T05:06:31Z")
> [@amarone](#): > > I got my tax document and was surprised to see they are reporting a capital gain for me (I don’t trade notes). It turns out LC has managed to recover something from many of the defaulted notes, and that recovery comes back as a capital gain, presumably because the whole note was written down to zero when it was charged off. > > I am not entering them separately on my tax return. I have put the total amount on one line with a date of “various”. Note the following from the instructions to Schedule D for date acquired: > > It doesn’t say the same thing for “date sold”, but I’m going with it anyway. I doubt the IRS will spend much time worrying about a gain of $29.49. I had some stock sales this year and tried the Various approach, but it looks like you’re supposed to snail-mail a form and backup documentation if you do this. I wound up doing it in Excel, csv, and the converter I mentioned. ---
**Author:** ![rpinrd](https://avatars.discourse-cdn.com/v4/letter/r/b3f665/32.png) [@rpinrd](https://boards.straightdope.com/u/rpinrd)\ **Post date:** [March 12, 2014, 9:43pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/706 "2014-03-12T21:43:17Z")
Been following this thread for a few years now (!!) and I have a quick question you experts might be able to handle. I’m really small time in Lending Club (only started with $250 investment. not gonna retire on that, but it’s fun to play with). I’m in Texas, so I’m on the Folio platform only. I started with really poor luck, two of my initial 10 loans were written off and since I’m such small time, it has taken forever just to get back to a positive return (LC tells me my net annualized return is 2.25%). Now here’s the question. One of my initial loans just paid off on schedule (not an early pay off). According to the Note page, there is still an outstanding principal of $0.93. This agrees with the Received Payments summary which shows an initial loan fraction of $25, and principal paid of $24.07. What’s up with the missing $0.93? Any idea? Is this some LC trickery that I’m not familiar with? ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [March 13, 2014, 2:34pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/707 "2014-03-13T14:34:13Z")
> [@rpinrd](#): > > Now here’s the question. One of my initial loans just paid off on schedule (not an early pay off). According to the Note page, there is still an outstanding principal of $0.93. This agrees with the Received Payments summary which shows an initial loan fraction of $25, and principal paid of $24.07. What’s up with the missing $0.93? Any idea? Is this some LC trickery that I’m not familiar with? I’ve noticed that right after they pay off there is a discrepancy like you are seeing but eventually the principal shows the full amount. Not sure what causes this but I think it happens to all of mine. I just had one paid off (early) and it shows $0.02 remaining…I’ll check back on it in a week or so. ---
**Author:** ![rpinrd](https://avatars.discourse-cdn.com/v4/letter/r/b3f665/32.png) [@rpinrd](https://boards.straightdope.com/u/rpinrd)\ **Post date:** [March 13, 2014, 5:54pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/708 "2014-03-13T17:54:24Z")
Hmmm. Just checked mine again. Now it shows the outstanding balance on my “Paid Off” loan as $0.20. So somehow overnight I was credited with another $0.73. I guess the other $0.20 will show up eventually? How strange… ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [March 14, 2014, 2:35pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/709 "2014-03-14T14:35:21Z")
> [@rpinrd](#): > > Hmmm. Just checked mine again. Now it shows the outstanding balance on my “Paid Off” loan as $0.20. So somehow overnight I was credited with another $0.73. I guess the other $0.20 will show up eventually? How strange… And now my whole note is paid off. Not sure why LC can be slow at crediting payments but that’s how it’s been. ---
**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:** [April 24, 2014, 12:36am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/710 "2014-04-24T00:36:48Z")
Been quiet here lately. Nothing much interesting on my profile except one loan that paid as expected for most of a year. Then they contacted LC in early March to request a payment plan; that payment (about a week later in the month, and half the amount) processed but they didn’t make the April payment. In the meantime, their FICO has plummeted from 710-715 to 530-535. It was 685 2 months ago so clearly something Very Bad happened with the borrower. ---
**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:** [April 24, 2014, 12:59pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/711 "2014-04-24T12:59:06Z")
Nothing much new for me. Just plodding along. I currently have 139 loans, none of which are in default, thank goodness. My routine at this point is to log in every couple of weeks, check my existing notes for potential problems, purchase new notes with whatever has accumulated in my available balance in the interim, and log out. It has been a few years since I last deposited funds into my account and, at this point, I don’t think I will. I am getting a very comfortable return so what I am doing now works for me. ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [April 24, 2014, 4:06pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/712 "2014-04-24T16:06:21Z")
While I complained awhile ago about the new policy of not allowing folio sales for a lot of the month, I haven’t had to sell any lately. I went through a bad period of grace periods and defaults but all have been solid the last couple months (knock on wood). I still hate that when it hits “payment processing”, no listing on folio. Other than that, 134 notes in good standing. I started putting a bit in each month again. My bad period in Oct didn’t hurt too much. ---
**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:** [April 28, 2014, 6:56pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/713 "2014-04-28T18:56:59Z")
Huh - I logged in to check to see if a note had sold (dumped the one going bad, at about a 95% discount - just easier tax-wise than dealing with recoveries), and I noticed that quite a few orders had been listed more than a day ago. It’s been ages since we saw anything older than 13 days remiaining! So for giggles, I added “income verified” back to the mix - and actually got some hits! Any speculation as to why this is? Better advertising bringing in more borrowers? Reduced institutional demand? Reduced lender funds availability in general? ---
**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:** [July 5, 2014, 4:50pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/714 "2014-07-05T16:50:46Z")
I am now at 150 notes, none in default, thank goodness. Over the last few months, I have had a few early payoffs, however. My net annualized return is currently 7.82% and although things are going pretty smoothly, I am now reconsidering adding funds to my account to purchase a bulk of notes to pick up the pace of my returns a little. How’s everyone else doing? ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [July 7, 2014, 3:18pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/715 "2014-07-07T15:18:15Z")
Net annualized return of 9.85% on 147 notes. I add $100/month. Still have only had one get charged off. I recently had one get behind quite a bit but they finally got it up to date. I’ll be selling it on folio as soon as it isn’t in pending status. Still hate that new feature of not being able to see a note over a good portion of the month. ---
**Author:** ![amarone](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@amarone](https://boards.straightdope.com/u/amarone)\ **Post date:** [July 7, 2014, 11:39pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/716 "2014-07-07T23:39:23Z")
Are you guys reporting the Net Annualized Return or the Adjusted Net Annualized Return? I have had 842 loans. 160 are paid off and 37 charged off. Current NAR is 9.67% and Adjusted NAR 8.82% However, I have not added more money for a year and when I look at what the account was worth one year ago, that suggests a return of 7.8% It did take about three months to invest my last contribution, so maybe LC ignores that period of low return while I had cash earning nothing. ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [July 8, 2014, 2:45pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/717 "2014-07-08T14:45:05Z")
> [@amarone](#): > > Are you guys reporting the Net Annualized Return or the Adjusted Net Annualized Return? NAR is 9.85% and Adjusted NAR is 9.61%. My notes are: A 17.9% B 50.3% C 28.6% D 1.7% E 1.5% I have a filter I use to weed out notes I have no interest in funding. ---
**Author:** ![Elemenopy](https://avatars.discourse-cdn.com/v4/letter/e/b5e925/32.png) [@Elemenopy](https://boards.straightdope.com/u/Elemenopy)\ **Post date:** [July 9, 2014, 4:57am UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/718 "2014-07-09T04:57:34Z")
OK, so my net annualized return is 20.xx%. That’s what I’ve fooled around with for the past year. I’ve been trying to put some “real” money in, and it won’t let me do it. After "Add routing & account number,"I do so, and then there are 2 more fields and nothing works. I’m about to quit altogether. ---
**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:** [July 9, 2014, 1:20pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/719 "2014-07-09T13:20:58Z")
> [@Elemenopy](#): > > OK, so my net annualized return is 20.xx%. That’s what I’ve fooled around with for the past year. I’ve been trying to put some “real” money in, and it won’t let me do it. After "Add routing & account number,"I do so, and then there are 2 more fields and nothing works. I’m about to quit altogether. Can you try with a different browser? e.g. Firefox vs IE vs Chrome? My current return shows 11.64% but that’s with two loans that were recently going very very south (as in 3 months overdue in one case, 1 month in another) and I sold those for pennies on the dollar just to get rid of them. LC doesn’t include things like that in the historical rate of return. Those two notes wiped out my previous month’s interest income and part of the prior one’s, I lost about 35 dollars on the two. My monthly interest right now is about 25 dollars (as compared with the previous year where it was about 17). I’m not putting a lot of money in at any given time; I add 20 dollars a month, and of course reinvest all the payments. I finally broke 100 notes recently - was well on the way to that a year or so back but I spent a couple of months selling off older / smaller notes for a profit, so that concentrated my cash into fewer new notes. Is anyone using the automated investing program? The minimum now for that is 2,500; at my current rates of contributions and repayments that’s 6 or so months away for me. ---
**Author:** ![wguy123](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/wguy123/32/3161_2.png) [@wguy123](https://boards.straightdope.com/u/wguy123)\ **Post date:** [July 9, 2014, 1:49pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/720 "2014-07-09T13:49:42Z")
> [@Mama\_Zappa](#): > > Is anyone using the automated investing program? The minimum now for that is 2,500; at my current rates of contributions and repayments that’s 6 or so months away for me. Not I. I still look at the site most days and have filters to make it easy to buy a new note when I go over $25. If I had a lot of money in LC or was going to be traveling for a month+ I’d probably look into it. ---
**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:** [July 9, 2014, 7:23pm UTC](https://boards.straightdope.com/t/lending-club-experiences/514989/721 "2014-07-09T19:23:00Z")
> [@Mama\_Zappa](#): > > Is anyone using the automated investing program? The minimum now for that is 2,500; at my current rates of contributions and repayments that’s 6 or so months away for me. Nope. I don’t think I can participate in the automated investing program as I am forced to invest through Folio_fn_ in my state. [Previous page](https://boards.straightdope.com/t/lending-club-experiences/514989.md?page=35) [Next page](https://boards.straightdope.com/t/lending-club-experiences/514989.md?page=37)