I experimented with LendingClub a while back with a Roth IRA.
All of the notes have matured except one. I don't really understand why this one is still outstanding--it was issued in 2016 with a 60 month term, but still has ~18% of its principle outstanding and is still receiving monthly payments. If I look at the progression of principle paid each month, it appears this note will take another 7 payments before it is paid off.
In March 2021 LendingClub updated the IRA custodian to AltoIRA. The fees were waived for 12 months. So they will start charging fees I believe in March 2022. Unclear to me what the fee is--AltoIRA pricing indicates either $10/month or $25/month depending on starter vs pro account, but I have no idea which one my account is and can't seem to find that info on Alto.
Other things I found online indicate that it is $100/year for lendingclub accounts held at Alto... Anyway I can contact Alto to find this information.
The total amount of cash I get from this note over the next 7 payments is < $5. Depending on the fee structure at Alto, this is going to cost me anywhere from $70 to $175 in account maintenance fees.
Does anyone know if it is possible for me to just abandon the note so I can close out the account and not pay maintenance fees?
Is it possible to abandon a lendingclub note? I have one note that is going to cost me a lot in account fees.
Re: Is it possible to abandon a lendingclub note? I have one note that is going to cost me a lot in account fees.
It's been a while since I was on the LC platform, but couldn't you just list the note for sale at a pretty good discount? I remember when I did that with notes that I sensed were going to be late or default, I could almost always sell them quickly. Once you sell it, close your account, and say goodby to LC and their fees.
Re: Is it possible to abandon a lendingclub note? I have one note that is going to cost me a lot in account fees.
They closed the secondary market as of Aug 2020, so it is not possible to do that AFAIK.veggivet wrote: ↑Thu Jan 27, 2022 10:00 am It's been a while since I was on the LC platform, but couldn't you just list the note for sale at a pretty good discount? I remember when I did that with notes that I sensed were going to be late or default, I could almost always sell them quickly. Once you sell it, close your account, and say goodby to LC and their fees.
Re: Is it possible to abandon a lendingclub note? I have one note that is going to cost me a lot in account fees.
Ugh...in that case, I would just close the account and walk away.
Re: Is it possible to abandon a lendingclub note? I have one note that is going to cost me a lot in account fees.
Good move! It looks like the stock has reacted negatively to your departure. Down 26% today...
FWIW, I haven't missed LC since I left them...way too much time invested for the return. I doubt you'll miss them.
FWIW, I haven't missed LC since I left them...way too much time invested for the return. I doubt you'll miss them.
Re: Is it possible to abandon a lendingclub note? I have one note that is going to cost me a lot in account fees.
Yeah I stopped investing in new notes I think in 2018? I'm glad my position is finally unwound.