This page walks you through the process we have established to collect payments from borrowers, and the tools at your disposal to monitor those payments.
Normal Course of Operations
The primary method of payment for all Lending Club accounts is via an electronic funds transfer whereby we withdraw monthly payment amounts from the borrower's bank account. When the funds are there, they are automatically remitted to Lending Club for distribution to the individual investors who purchased the Notes corresponding to the loan. If the debit transaction fails for any reason, our member support team will contact the borrower that same day via telephone and e-mail. In the majority of cases, our member support team is successful in reaching out to the borrower. A borrower may indicate to us when funds will be available, in which case we can successfully re-present the payment within a few days.
Collection Process in case of Late Payment
When our member support team is not successful in reaching the borrower, or is unable to collect for any other reason, the matter is turned over to our internal collections department. This generally happens with all borrowers who have a payment that is at least 15 days late, and can happen earlier if the member support team is unable to reach the borrower.
Our internal collections team analyzes the delinquent account and reviews a recent credit bureau report on the borrower to understand the current credit status of the borrower. If we are able to contact the borrower, our team will discuss the matter with the borrower. We will then make a good faith judgment call about the fastest and most likely way to bring the account current. In some instances, our team will work with the borrower to structure a new payment plan. In other instances, we will take direct legal action against the borrower.
If our team is unable to make contact with a borrower, or the borrower does not cooperate with our efforts, we will turn the delinquent account over to our external collections agent for further action. Our external collections agent has more resources, including more sophisticated tools to track changes of location and contact information, and typically will make diligent telephone and e-mail attempts to contact delinquent borrowers.
We believe that a strong and diligent collections process is necessary to keep our community thriving and continue earning the trust of our investors.
Where to look for up-to-date information on any particular account
Investors can review the payment history and, if applicable, collections status of any of the Notes they have invested in by logging into their account, selecting a Note and clicking on the "status" link.