I don't think existing lenders can bid on loans either. I tried to yesterday with existing cash reserves and nothing went through. I don't know how they'll be able to fund loans if they won't let lenders bid on them.
Dividend growth investor
· 1 year ago
That's alarming for me. I hope LC does not go down with our money :-( I really hope that Prosper, LC and others are not pyramid schemes where you get paid to refer people and then the money is borrowed by P2P lenders themselves and paid out in bonuses to new members in order to attract fresh money from outside. At the same time the default ratio of loans increases...
deepali
· 1 year ago
It sounds as though Lending Club is changing the way it processes loans (by issuing promissory notes as opposed to whatever they were doing before). So until the change is fully enacted, they've stopped processing loans.
Brett @ Personal Loan Portfoli
· 1 year ago
DGI: I don't think they are running out of money because they have announced that they will be funding all loans by borrowers through the quiet period. It seems more like a change in regulatory model.
thickenmywallet
· 1 year ago
Both Prosper and Lending Club have to register with the SEC. What they do can be considered a "security" (as legally defined). I can't comment on why Lending Club has stopped taking no lenders while Prosper continues to take new lenders while both are undertaking the same regulatory compliance.
All Comments
I really hope that Prosper, LC and others are not pyramid schemes where you get paid to refer people and then the money is borrowed by P2P lenders themselves and paid out in bonuses to new members in order to attract fresh money from outside. At the same time the default ratio of loans increases...