Should You Invest With Lending Club or Is It Too Risky?

by Junior Boomer on March 9, 2010

Do the words “Stock Market” make you cringe? Did you see your 401k get slashed into a 201k? Are your bank CD’s paying pennies on the dollars?  Are you interested in potentially making 9.65% on your money? If you answered “Yes” to any of these questions, then it might be time to invest into something different.  Peer to Peer Lending might must just be what the doctor ordered.  This post shares my experience on setting up an account with P2P leading lender Lending Club and how I made my first investment with them.  Don’t know what Peer to Peer lending or Lending Club is? Don’t worry, you soon will.

Be sure to take advantage of a free $25 offer by clicking on the various Lending Club Links throughout this article.

Lending Club Review

Investing With Lending Club Review

What is Peer to Peer Lending?

I’ll be honest, I had read a few blog posts on Lending Club and follow their Twitter profile, but I really didn’t understand what they did or what Peer to Peer Lending was.  Thankfully, after requesting some info from them, a representative reached out to me with a phone call.  How’s that for awesome customer service?   Here’s how it works:

Peer to Peer lending sites like Lending Club and Prosper bring together a large network of borrowers and investors.  First, a borrower who may be looking to consolidate debt with one lender and lower their interest rate would go to Lending Club’s site and fill out an online application.  Based on several criteria (credit score, debt-to-income ratio, size of loan) that person is given a rating which then gives them a determined interest rate.   Their information is now on the Lending Club site for potential investors to loan them the money and collect the interest.  Much like investing into a bond.

Although it has it’s similarities to a bond, there is some potential downside. The biggest downside is that the borrower may default on that loan which leaves you out in the cold. That has to be an important consideration when you are choosing the loans you want to fund. Riskier and a potentially higher return is not always the best answer. One last thing to note is that Lending Club is not approved in all states.

Investing With Lending Club

Lending Club Review

Investing With Lending Club

How to invest money with Lending Club. Since I don’t have any debt to pay off, my main interest in Lending Club was as an investor.  The cool thing with investing with Lending Club is that it only takes as little as $25 with one borrower.  With a $250 investment you’ll be able to diversify among 10 different borrowers- much like a diversified mutual fund.   You have the option of selecting the more conservative loans or going more aggressive.

Opening an Account With Lending Club is Easy

I was amazed on how simple it was to open an account with Lending Club. After providing basic information as you would to open a savings account at your local bank, you are ready to go make your first investment.

After you verify your account, you have to fund it.  You have the option of adding money from your checking account, wiring the money, transfer using PayPal, credit cards, or now you can even transfer in an existing IRA.  For my first test, I transferred $250 from my PayPal account.  It only took 15 minutes for the money to transfer in before I was ready to invest.

Lending Club Review

Sample Conservative Portfolio

Making My First Investment With Lending Club

Once the money is showing in your Lending Club account, you’ll see a screen like that above that is asking you to “Build a Portfolio”.  As you can see, a conservative portfolio will get you a approximately 10.62% (provided no defaults) while the aggressive portfolio is 16.74%.  Having been the first time I had done this, I opted to go for the more conservative portfolio.

Once I selected the Conservative Portfolio, the Lending Club system automatically prepared a diversified portfolio of 10 individual notes which would net me an approximate 8.49% return (after potential default rates and service charges). Still not a bad return on my money. If there are no defaults and no pre-pays, I stand to make 9.92% return.

Since I selected the Conservative Portfolio, most of my notes were in the A, B, C categories (least risky) with one loan a D.  I could have changed it, but opted to go a little risky for at least one of my investments.

Information on Borrowers

While I took the easy approach and let Lending Club compose the portfolio for me, you also have the option of building your own portfolio of borrowers.  They give you the ability to get as much information on the potential borrower and even ask the borrower questions if you need further clarification.

One of the borrowers that I helped fund was looking to expand his current computer business.  This was an excerpt of what he was looking to accomplish with the loan.

I am requesting this loan with the goal of expanding a computer repair, computer networking and website development business that I currently own. I am an excellent candidate for this loan as I currently have no debt and simply need additional working capital in order to take advantage of the rapidly expanding IT market.

If I wanted to ask him more questions, I could have; but didn’t see it necessary.  In addition to the purpose of the money, you also have access to the following:

  • Gross Income
  • Current Employer
  • Home Ownership
  • Location
  • Length of Employment
  • Credit Score Range
  • Accounts Now Delinquent
  • Earliest Credit Line
  • Delinquent Amount
  • Open Credit Lines
  • Delinquencies (last 2 yrs)
  • Total Credit Lines
  • Months Since Last Delinquency
  • Revolving Credit Balance
  • Public Records on File
  • Revolving Line Utilization
  • Months Since Last Record
  • Inquiries in Last 6 Months

As you can see, you are provided with more than enough information to make an informed decision about your future investment.

Lending Club FAQ’s

Just in case I missed anything, here’s some more of the common frequently asked questions from the Lending Club site itself:

What is the minimum investment amount to open my account?

There is a minimum investment of $25 required to open an investing account. Diversification across multiple Notes requires a larger investment amount. For example, an investment of $5,000 would let you diversify across as many as 200 Notes. PRIME and No-fee IRA accounts do have minimum opening balance requirements of $5,000 and $10,000 respectively.

What to expect when a loan is late?

Lending Club will make every effort to contact the borrower and bring the loan back to a current status. Our company implements the industry’s most effective mechanism to ensure the loan status do not deteriorate further. You will be updated with any collection activity via the loan performance page in your account. Be aware that defaults are a natural component of investing in notes, and diversification is the best resource to lower the volatility of your portfolio and obtain consistent returns. Most investors start with an investment of $5,000 which allows for investing in as many as 200 notes. The average net annualized return after defaults and fees since inception is over 9.5%.

How are loans listed and approved for investing?

Borrowers who apply and meet our strict credit policy are listed on the site within 24 hours to receive funding. An additional manual review is performed and in some cases, Lending Club requires additional information.   When all information is complete loans are marked “Approved”. All approved loans will issue if the borrower receives funding and bank account is verified.

What is the default rate on Lending Club loans?

The overall annualized default rate since our inception in 2007 has been below 3%. Our stated returns to investors is measured after taking into account that default rate. Our default rate remains low because we are very diligent in both our selection criteria and our collection activities. Since inception, we have been approving less than 1 in 10 loan requests submitted to Lending Club. You can monitor the defaults and delinquencies of loans funded through Lending Club by reading our SEC filings at www.sec.gov and on our Statistics page.

Borrowing Money With Lending Club

As I mentioned, Lending Club to me was more of an investment opportunity not for borrowing.  If you are looking to borrow and possibly consolidate some debt or fund a business venture, Lending Club will fund you up to $25,000.  This can be especially attractive if you’re having issues getting funds from a bank or credit card.

If you’re looking for a good story for someone who did borrow from Lending Club, I encourage you to read a good story by Matt Jabs from Debt Free Adventure.  He walks you through the steps he took to consolidate his high interest credit cards and consolidate them with a loan from Lending Club.

Need to borrow some money or consolidate debt? Click the Sign Up Button to find out more info on Lending Club.

Is Lending Club Too Risky?

Although my experience is short lived, I don’t see Lending Club being any more risky that choosing a stock mutual fund.  The key is to be diversified-which is like any other investment you would make.   Do your homework and see if Lending Club makes sense in your investment portfolio.  As of now, it makes sense in mine.

Want to try out Lending Club? Just click above and get $25 towards your first investment today.

Other Reviews on Lending Club

Related Posts with Thumbnails

{ 35 comments… read them below or add one }

Matt Jabs March 9, 2010 at 8:10 am

At this point, I am both a borrower and an investor with Lending Club. All my experience with them on both fronts has been utterly positive. If you have decent credit and are looking to consolidate your debt… borrowing can be a great idea. If you are tired of low rates on CD’s and money market accounts, Lending Club rates round out around 9% right now… which makes it one of the best investment vehicles out there right now.
.-= Matt Jabs´s last blog ..Huge Food Recall – Are You Tired of Contaminated Food? =-.

Herali March 9, 2010 at 9:43 am

Be cautious. As you said, the downside is defaults. So if you are investing a few $100s, it does not make sense. It’s like gambling: if 1 of your 4-10 loans defaults, then you lose 10-25% of your investment. The trick is diversification: I have more than 400 notes, and my share of defaults, but the defaults don’t impact my investment, because I’m still making 8.3% after those defaults (which is around 3% on the platform)… keep it to $25 per loan, and you’ll minimize volatility. Great concept.

Ryan March 9, 2010 at 8:48 am

I’ve made loans through Lending Club on several occasions – all before they filed with the SEC. they are currently not available in my state unless I go to the secondary market. So I don’t have any new loans with them. Otherwise I would probably have funneled in quite a bit more. It’s not a guaranteed investment, but it is attractive compared to the 2% you can get in a CD.
.-= Ryan´s last blog ..0% Interest Credit Cards for Purchases and Balance Transfers =-.

Peter March 9, 2010 at 9:09 am

I’m currently an investor with Lending Club, and so far I’ve had a good experience with them. While I’m only invested in a few hundred dollars worth of loans so far, I plan on possibly adding a bit more because so far my experience has been a pretty good one with none of my loans defaulting or coming in with late payments. Currently I’m making a bit over 11% with my money. I’ve been extremely careful about what loans I invest in as well, only investing in A or B grade borrowers, and always double checking their credit report, income, and reasons for getting the loan.

If you’re careful I think it can be a good way to make some extra money on your cash you had lying dormant in an account earning 1-2% at most. As always, be careful in which loans you invest in, otherwise you may end up paying for it later on.
.-= Peter´s last blog ..Ways To Make Extra Money Series: 20 More Income Generating Ideas From Our Readers =-.

Investor Junkie March 9, 2010 at 9:42 am

On my $1k for almost a year now I’m earning 11.24%. I am adding an additional 1k this month. If you know how to invest, it can lead to very secure returns. I’ll be posting an update to my blog this month.
.-= Investor Junkie´s last blog ..Ginnie Mae Investing =-.

Lakita (PF Journey) March 9, 2010 at 6:57 pm

This is something that I am going to consider as part of my investment strategy in the future. It doesn’t make sense for me to consolidate and borrow with them like it did for Matt….so I’ll be looking strictly at the investment side. Thanks for the thorough review!
.-= Lakita (PF Journey)´s last blog ..Along the Journey Weekly Roundup #6: Celebrating Women’s Heritage Month =-.

Erica Douglass March 9, 2010 at 9:11 pm

I currently have ~$26,500 invested in Lending Club over 254 notes. Of those 254, 4 are late–but 0 are in default. Not too bad!

My net annual return (which takes into account late pays) is 11.79%. I am VERY happy with Lending Club.

-Erica
.-= Erica Douglass´s last blog ..Where to Meet Me In Person This Month… =-.

Junior Boomer March 9, 2010 at 11:28 pm

That’s awesome news! Thanks for sharing your LC success. That’s inspiring as I begin to add more it. I might even consider using some of my IRA money, too.

JohnnyH March 10, 2010 at 10:11 am

LendingClub is great for both investors and debtors… However, the only thing I don’t like is the non-variable term of the loan: 3 years.

Essentially any loans are 3 yr CDs… 3 yrs is a long time, too long for me to fully embrace LendingClub.

Investor Junkie March 10, 2010 at 4:10 pm

@JohnnyH: I agree. I wish they had more options to borrowers and investors for term of the loans. Though I think right now they need a proven model. 3 years loans is a good period to test.
.-= Investor Junkie´s last blog ..Ginnie Mae Investing =-.

Junior Boomer March 11, 2010 at 2:14 pm

@ JohnnyH

Thanks for offering your insight. That is definitely all investors and borrowers should know.

Newbie March 11, 2010 at 4:04 pm

I thought that you could trade the notes, if you wanted to get out of the 3 years. However, LC takes a cut of the trade.

Victorino March 15, 2010 at 7:41 am

If you are saying the lending clubs is more for investors rather than for borrowers, then it’s maybe good to invest on them.
I agree that to minimize the risk we should diversify our investments.
Furthermore, we should always have a thorough research and study on them. We can read other true testimonials and stories from persons who have experience the club.
.-= Victorino´s last blog ..Personal Finance tips #1: Stick to Your Financial Plan =-.

Ken April 2, 2010 at 4:59 pm

I too participated in lending club as an investor. I have some concerns, based on a loan that I funded. The borrower was asking for 20k, for a down payment on a house. After he got the loan, he made 1 payment, and the next thing you know, is that lending club can’t find the guy? They said they verified his income & employment (4 yrs), now they can’t find him, and supposedly they can’t reveal any info, or discuss his loan withany members who financed loan? So my $200 is hanging out there which I won’t earn anything for 3 yrs, and I still get the risks for the other loans> Talk to their atty., and he danced around the question, never answered the questions directly. My concern is, who governs LC, to make sure their being straight up, and running a clean show! For all I know, someone there could have created this guy, and pocketed 20K.

Paul April 7, 2010 at 1:30 pm

I stuck 1000 bucks in lending club over a year and a half ago, in 40 notes. 8 have defaulted so far, and some have paid off early. My rate of return thus far has been below 1.00%… heh. Probably a bit of bad luck, since I seem to be the exception. I sorta want to fund new notes, but haven’t done so yet.

Carl April 14, 2010 at 1:04 am

Paul and Herali echo my sentiments and experience with LendingClub. I have about $5000 invested in loans funded a few years ago, before the SEC filing. The rate of return quoted to me in reports does not jibe with the actual return, when defaults and late paying loans (which usually progress to defaults) are included in the computation. I was not particularly conservative or risky and evaluated every single loan application (very tedious), but did take the portfolio approach to spread risk. In my portfolio, defaults are spread pretty evenly across all classes of loans — quite a surprise to me.

Another surprise it that you must be very patient to fund any risk-diversifying portfolio with LC. Of all the loans competing for funding at a particular moment, many are not worthy of consideration, many more not close to 100% funding status (where the loan is actually made to the borrower). For every 100 active applications, only a tiny percentage are good candidates for investment at any moment. LC would need much, much higher loan volume in order for investors to find it easier to swoop in and drop money on a diversified portfolio of separate loans.

I have just broken even, all told, with interest payments outstripping defaults by a little bit. I have not lost money, the returns are much better than if I had put the money in stocks during the downturn, but the yield is nowhere near the 9% which shows up on the LC reports for my account.

Brian May 7, 2010 at 9:56 pm

I love Lending Club so far… I’ve been investing through it for about 6 months now. I have nothing but good to say about the company and the mechanism.

I made sure to spread out my money with 25 dollar investments only per loan, which means I only risk losing 25 dollars maximum per loan. This seems to be working well and I’m making around 10% returns so far using a mostly moderate spread of A, B, C, with a few D loans.

I also really like their trading platform. I don’t buy many loans on it, but I have found it very useful for selling “Grace Period” or “Late” loans at a slight loss. I’d rather not risk a loan going all the way to default and would rather get 20 dollars out of my 25 back as soon as I start seeing poor payment consistency in a loan. Apparently there are people out there who like to gamble in huge returns and buy my discounted loans – so it has worked well for me to minimize my losses through the selling of inconsistent loans that I feel are at risk of going bad.

Leo May 8, 2010 at 12:34 pm

I believe faithfully in diversification. This to me can be an option. I’ve heard different takes on this, but overall it seems like the majority have had a positive experience. I will look more into this. Thanks!

Roche July 18, 2010 at 2:21 pm

If you invest in a loan where the person says they are going to use the money for a down payment on a house you are basically investing in someone who is taking on two loans – a mortgage and a lending club. This is not a good idea. Don’t all mortgage lenders frown on a person borrowing their down payment money and require a person to indicate that none of their down payment money is borrowed? Another loan to watch out for is the credit card(s) payoff loan. If someone wants more than $6,000 for the purpose of paying off a credit card(s) I probably would avoid that loan. Any loan where the monthly payment was more then $210 I would be very careful about investing in. There are all sorts of strategies and rules one could come up with but if you have 254 investments and only 4 of them are in default I would say that you are doing very well.

Bender July 29, 2010 at 2:26 pm

Beware of the BAD MATH.

LC advertises a default rate that corresponds to all outstanding loans 120 days or older. The problem with is:
(1) the default rate on unsecured consumer loans tends to increase over time (e.g. loans that are 24 months old have a higher default rate than loans that are 6 months old); and

(2) there are significantly more new loans than old loans issued by LC (just take a look at the number of loans issued by year).

Lets take a simple example.

In 2007, Bender’s P2P Loan Shop issues 1,000 loans. On January 1, 2008, 25% of the loans I issued in 2007 go bad. BUT, in 2008 I issue 10,000 loans.

Now what is my “annualized default rate”. Per LC: “Annualized Default Rate is calculated by dividing the total amount of loans in default by the total amount of loans issued for more than 120 days, divided by the number of months loans in default have been outstanding and multiplied by twelve. The loans issued for less than 120 days are excluded from the calculation because loans are unlikely to default during the first 120 days.”

At the end of 2008 we 250 loans that have been in default for 12 months and a total of 11,000 loans issued.

Annualized Default Rate = 250/11,000/12*12 = 2.27%.

Mmm seems good right? Heck no, this is awful. What this data should tell you is that loans originated by Bender’s P2P Loan Shop have a 25% default rate after they have aged one year.

When you look at the number of loans and aggregate amount of loans issued by LC over the last three years you must conclude that their advertised default rate is meaningless because the young loans swamp the data of the old loans.

Now granted I’ve over simplified some things here, but at least this should cause you to go look at the math.

Ken August 17, 2010 at 3:23 pm

Yes, I agree with the BAD MATH calculation. My BIGGEST complaint is with
LC verification system. They claim they are responsible for their verification of a borrower. I participated in funding a loan for 20k, some put in only $25
some put in hundreds, I put in $200, etc. The second month into the loan
the guy doesn’t make his payments. This guy was verified by LC, credit rating in the 700′s, employed for over 4 years & currently employed, income
$6k per month, all verified by LC. After borrower doesn’t pay, into 2nd month, LC can’t get a hold of him, can’t find him, supposedly makes all these efforts to contact him. After over a dozen emails and numerous calls to LC, they respond back that they are trying to contact borrower. LC’s atty.
is very evasive when I talked with him, saying it’s a privacy issue, can’t devulge any information, period. That’s when the RED FLAGS popped up,
so my question is WAS this guy invented to fleece 256 people out of their
measley $25 to $100′s, and put it in their pocket. Someone who got a $20k
bonus for printing up a fictitous trying to contact borrower list. Pretty good
incentive for a couple of hrs. work on a computer generating a list from a
already stored contact data base. That’s my complaint!!! After all this, not
one person out of the 256 people tried to sell their loan, not ONE!!!! This
is VERY STRANGE, and LC won’t or can’t provide an ANSWER. Now you tell
me, is this GOOD business PRACTICE??? Wait and see, when the dust settles on this, IT WILL HAPPEN AGAIN!!! That’s why my money, no matter
what the amount is, is still mine, WHEN I WANT TO GET IT. When you give up $25 over 6-10 loans, you might think twice about telling people how GREAT LC is. The idea is GREAT, it’s the THIEVES that are trying to work the angles, that they need to get rid of. And trust me, there where ever
large sums of money are at. This company is no different. If they plan to survive they need precautionary measures established for their members
to prevent fictitious borrowers being created. They don’t have any one to follow up to see if this borrower is for real, or their verification process neds a LOT OF HELP!!!!!

TechEntre September 3, 2010 at 7:50 pm

Only invest in responsible borrowers that aren’t frittering away their money on things that aren’t financially responsible. Financing a wedding, one time purchase, dream vacation, etc sound like you are doing someone a favor, but in reality they could save up for those expenses on their own.

Loaning to someone to consolidate debt or for a car they need for work are reasonable and lower-risk investments, the car is collateral and someone that understands the importance of refinancing bad debts has some kind of a financial education.

The default rate goes up as the time goes on, but less so on the better loans.

Charly October 3, 2010 at 10:09 pm

I am an investor with LC and have around 15,000 $ invested. So far, the loans which defaulted or are late are not the ones from lower credit score borrowers but from the ones with 600+ and 650+. The lower credit score people sometimes are late on their payments, sometimes for a month but then pay but these better loans that I even get lower interest rate from gives me worries especially when they can’t find the guys, leave countless messages and/or default them stating that recovery of any assets are unlikely. I tried to diversity, investing just 25 $ per loan and once a week only, but you still end up investing more than 25 $ per loan unless you sit down and analyze hundreds of loans and make sure you do not invest two weeks in a row in the same loan. This results in defaulted loans that I bought multiple shares of. I do my own math that’s the only math I trust. I am getting after defaults, defaults in process, service charges, roughly 7 % even though they quote me for getting about 11 %. I think it’s still decent return.

Techentre October 14, 2010 at 1:32 pm

Charly, dude, get out while you can! Have you read the prospectus? It is insane, if they went under they can stop facilitating the loans! It says so right in the prospectus! And they have LOST money since they started, so they very well could go under.

Ultimately you aren’t lending to the borrower. Lendingclub is lending to them and you are BUYING a NOTE representing the loan.

Get on the Folio site and start selling, you should be able to get the current value on 95% of your loans, the under performing ones you will likely have to take a discount on.

If lending club turns their company around and starts doing well, I would consider lending again, until then the risk IS NOT worth the reward.

Miriam October 16, 2010 at 6:06 am

Techentre, how did you find out that they have lost money since they started? I have looked everywhere, could you tell me where to find that info? Thanks : ) Weighing my options before signing up….. or not

GIC January 13, 2011 at 11:37 pm

Partner and me ( accountant and engineer ) are raising capital for a small RE investment fund ( up to $400K ). about 30% of the fund will be own by us and rest will be funded from outside. We both have excellent credit scores, experience with investing, both owning a rental properties.
So if there are people interesting in investing let us know. Our estimate is about 10% return on investment. ( are plans are conservative with this invest. fund )… it is more long term investment . Minimum 3K

Lee February 1, 2011 at 12:24 pm

I signed up with Lending Club about two weeks ago. Seemed like a good way to go. It was highly recommended by a friend of mine. I have been chomping at the bit wondering if I made the right move. Glad I found this blog, now maybe I can sleep! Heh

Ken March 12, 2011 at 2:26 pm

I haven’t seen any comments lately on lending club. They have never responded to my complaint on their verification process, and I still believe they had someone within the company create this fictious character, borrowed 20k, and put it in his pocket. Then turned around and told everyone who funded this loan, that the guy
skipped out, and they couldn’t find him. Come on lending club, prove me wrong with what happened here. If I’m wrong, I’ll admit it. If not, send me my money that I put up for this guy, YOU verified and rated this loan as a B loan (Low Risk). LC’s attorney, danced around all the questions asked, and would not provide me, a member of LC with any information. So tell me, WHY would anyone WANT to invest with this company?

Shane March 12, 2011 at 4:18 pm

I’m with you on that suspicion Ken, the whole business is shady, they can take ownership of your loan if they declare bankruptcy and stop paying you back.

Maybe I missed it - but I haven't been able to find the answer to a basic question that Every potential investor should be asking; "what is REQUIRED for Proof of Income and Assets, ETC from the loan application? Obviously these P2P Clubs are pulling a "Si March 25, 2011 at 8:26 am

Hey, did I miss where these P2P websites Explain Supporting Doc’s Collected to VERIFY the Written Word on an App.?? No mention (that I saw) of needing 2 recent Paystubs and hopefully a W2 or two……

Also, it would appear from their websites, that one uses Equifax and the Other Experian. So, what I’m Hearing is; they Only pull a “Single Bureau” Credit Report? Thus Only getting a1/3rd view of the Overall Credit Health of a Borrower………..

Lastly, does anyone know if this same concept and business model is being used For; “”Car Paper”” (SECURED Collateralized Debt that also Pays High Yields for Notes used to purchase late model pre-owned cars).

Unsecured vs. Secured in this P2P Arena is what I’m looking hard at before Jumping IN………….. I like Sleeping Well – a Pink Slip as Security for a Note is Almost as good as an Ambien in my book :)

Perry April 28, 2011 at 7:19 am

I am currently reading the prospectus and studying Lending Club.

The risks to an investor are well explained (and the fact that Lending Club as a company was a money loosing operation – which is separate from the performance of the Notes).

But it also states that in if you don’t live in California where everyone can invest up to $2500; that all other investors (or investors in California who wish to invest more than $2500) must have a annual adjusted gross income of at least $70,000 ($85,000 for California) and net worth of $70,000 ($85,000 for California); with the net worth not including the value of your home, home furnishings, and automobile). There is an alternate qualification of $250,000 net worth which does not include your home, furnishings, and automobile).

As I read the above posts – I wonder how many people investing several hundred to a couple thousand of dollars actually have met those criteria. Might I suggest that if Lending Club were to have a financial problem – that the first set of Note holders that could be affected would be those that lied on their application as being qualified as an investor.

In my case – if I chose to invest; it will probably be with an initial investment of $30,000 in Notes (not stock).

Have a great day,

Coozbee June 12, 2011 at 1:20 pm

This company has more exit holes than a RAT in a dump. There is NO guarantee on return of investment. The RISK is all on the member and
there is no real enforcement of getting swindled by a company who has
their information and operation practice in writing, upfront in the prospectus
as the other members can verify in the comments. I did pursue this
and the state of California enforceses the law. So anyone outside of
California is at the mercy of the state agency investigating the company.
If there is a small amount of complaints, the agency puts it on the back burner. Believe me, I went thru the whole ordeal. Take my word for it,
your better off buying stock on the NYSE that pays a dividend, than this con
job business, that is very shrewd in its operation and evasive tactics by
the company’s attorney. That’s why there ARE laws established to protect
the consumer. This company goes around the established laws. Remember
the saying by P.T. Barnum “there’s a sucker born every minute”- “Don’t be a sucker!!!! Avoid this CON game!!!

get free money March 14, 2012 at 11:04 pm

This sounds interesting. I may give this a try with a small amount of money to see how it works. Good investment options seem difficult to find right now, especially with the very low rates on CDs.

MHB May 17, 2012 at 6:41 pm

I gave Lending Club so much personal information via fax and e-mail. As a borrower this is a complete scam. My loan was fully funded, then I received an e-mail saying they canceled my loan. Really?
They collected so much personal information. It leaves me sick inside. This company is unethical. Don’t give them your financial or personal information.
They should be shut down.

Josla November 17, 2012 at 5:06 pm

Can anybody help me on my school project? I am trying to gather information about the pain points of investors in LendingClub. If you are an investor in LendingClub and can spare 10 minutes it will be very helpful to me.. This is a survey through SurveyMonkey. Thanks much for your help!

http://www.surveymonkey.com/s/HS6B52K

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