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What Should an Investor Expect When a Loan Payment Is Late?

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Delinquencies are a natural component of investing in Notes. When members fall behind on their payments, LendingClub makes significant efforts to contact them, collect outstanding payments, and bring the loans back to "current" status.

In addition to servicing and collections efforts, LendingClub reports delinquent borrowers to credit bureaus every month. This information may adversely impact a member’s credit score and their ability to access credit in the future, which can incentivize borrowers to bring their loans back to “current” status.

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Related FAQ's
How Is the Service Fee Collected?
LendingClub charges an investor service fee of 1% of the number of borrower payments received by the payment due date or during applicable grace periods.
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What Is a Payment Plan and How Do I Track It?
In some cases, we arrange payment plans with members to gradually bring their loans back to "current" status.
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How Does LendingClub Bank Take Loan Payments?
LendingClub Bank issues and services loans and collects principal and interest payments from members.
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A member may change their due date. Loans with LendingClub Bank have due dates automatically set to the day of the month the loan was issued.
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Related Glossary
Revolving Credit
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
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Annual Percentage Rate (APR)
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
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Accrued Interest
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
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Charge-Off
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
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Fixed Interest Rate
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
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Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. Credit union membership may be required. Deposit accounts are subject to approval. Deposit products are FDIC-insured up to $250,000 per depositor, per ownership category.

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