tag:blogger.com,1999:blog-8112482643541229498.post5886309840747596982..comments2022-02-06T08:05:40.498-06:00Comments on Lending Club Experience: Why Lending Club is a Scam (Hint: It's not)Marchttp://www.blogger.com/profile/09771303240662270613noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-8112482643541229498.post-73150120116763939762014-04-13T14:59:11.979-05:002014-04-13T14:59:11.979-05:00Speaking for myself only, Googling "scam&quo...Speaking for myself only, Googling "scam" with any "X" allows me to see if anything, bad or good, has come from others association with "X". Before the internet, contacting the BBB or personal experience of friends and neighbors was almost the only way of finding out about ad-mail offers that seem "to good to be true". Now the personal experiences of millions is available at a key stroke (or probably lots of key strokes). I have found, as the author alludes to, that most "scams" are reported by people who did not take the time to understand what they were getting for their dollar. There are legitimate scams out there. But, with some patience and a little time, it is easy to separate the wheat from the chaff.u/ihttps://www.blogger.com/profile/14213637864817738976noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-38326012823196122772013-09-10T01:33:42.288-05:002013-09-10T01:33:42.288-05:00Googling is lending club a scam is what got us to ...Googling is lending club a scam is what got us to your page ;)Unknownhttps://www.blogger.com/profile/15525437899696151267noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-26661603887048620152013-03-08T22:46:06.842-06:002013-03-08T22:46:06.842-06:00Well, just for me, I make it a habit to google &qu...Well, just for me, I make it a habit to google "X is a scam" or "x ripoff" to see if others are saying something bad, not necessarily because I have been hurt, just to see if others are thinking what I am or have been hurt.<br /><br />So maybe it can work out like unemployment numbers work out for the government. Since they don't count inactive workers in the pool ("Are you looking for work") those who answer no aren't counted as unemployed even if they need work. So, when the economy gets good again and people look for work, they will answer yes to that question, thus increasing unemployment numbers.<br /><br />I've also noticed that some pages implying "X is a scam" or "X is not a scam" may have been put there by the companies or competitors. (kind of a supposition but sometimes their facts just sound like an ad).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-64584708123423036602012-01-09T08:05:59.632-06:002012-01-09T08:05:59.632-06:00@veggivet, I agree there are some people who try t...@veggivet, I agree there are some people who try to scam P2P lending sites. As far as going after people who declare bankruptcy, P2P loans probably have the least pull in trying to recoup their money, and would spend more money trying to recoup than they could possibly get back. Bankruptcy is really considered a protection for the borrower against lenders.<br /><br />There are some things that protect P2P lenders:<br /><br />1. Diversification. Smallest slice possible in a large number of *different* notes. (I've made the mistake of buying multiple notes from one loan and it went south)<br /><br />2. Bankruptcy laws are more stringent. It is harder to go into bankruptcy. This does not stop the person who happens to meet the tougher requirements from taking advantage of the situation, but it does cut down on the number of people who can misuse the system.<br /><br />3. Up front underwriting. Lending Club has stricter qualifications than Prosper (http://money-cake.com/2011/10/lending-club-vs-prosper-the-top-2-social-lenders/) which shows in the lower default rate of 3%(http://factoidz.com/lendingclub-review-and-promo-coupon-code/).<br /><br />4. Education. There is only one way to learn, and that is through experience. There are two ways to get experience, yours and someone elses. However, the most effect is a combination of yours and someone elses. Read what you can then get started and try it out.<br /><br />I try to share what I can what I have learned, as well as my results. That way people can determine if the risks are worth it. Out of over 500 notes I've held it looks like only 2% to 3% will go into charge off (only one note is actually in charge off, but I expect the rest to go into charge off soon)Marchttps://www.blogger.com/profile/09771303240662270613noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-60513163597726359652012-01-07T12:07:04.149-06:002012-01-07T12:07:04.149-06:00Lending Club itself is not a scam, but there are n...Lending Club itself is not a scam, but there are numerous scammers masquerading as borrowers there, as there are on any P2P site. Many borrowers file for bankruptcy shortly after receiving funds, sometimes without making a single payment. One P2P blogger wrote that he had been contacted by some borrowers who had declared bankruptcy (not pre-planned), and told him that LC hadn't put much effort into pursuing them. I don't think their collections process is very effective.veggivethttps://www.blogger.com/profile/08454562155836634367noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-22954293907606946812012-01-05T10:19:43.739-06:002012-01-05T10:19:43.739-06:00For #3, let me clarify, the most plentiful before ...For #3, let me clarify, the most plentiful before the late majority and laggards finally adopt.Marchttps://www.blogger.com/profile/09771303240662270613noreply@blogger.comtag:blogger.com,1999:blog-8112482643541229498.post-77700724844306000112012-01-05T10:18:11.274-06:002012-01-05T10:18:11.274-06:00Wow, this ended up being very disjointed. I was tr...Wow, this ended up being very disjointed. I was trying to put too much in, and editing it down really cut up the flow. It was about three times as long at first draft.<br /><br />Basically,<br /><br />1. googling for "scam" on anything is a bad idea, especially for disruptive technologies<br /><br />2. before investing, do your homework, but don't wait forever, trying to get every piece of information, dip your toes in<br /><br />3. there will always be people who have a poorly informed opinion, and those seem to be the most plentifulMarchttps://www.blogger.com/profile/09771303240662270613noreply@blogger.com