Second Update from Lending Club CEO

[WabiSabi]

Has anyone read the second update from the LC CEO? It seems pretty telling that they are offering financial incentives to add money to your account because people must have turned off Automatic Investing and withdrawn in droves.

I don't think some shady actions by the former management mean anything bad for the company as they seem to still be profitable but the illiquidity sure is scary and I was over invested so I'm going to continue pulling out some of my money. That kind of activity is what can be worse for the company and cause a snowball effect but I'm not going to be a martyr.

[Syonyk]

Huh.  I forgot I'd disabled automatic investment a while back when I was buying a house in case I needed some cash.  Turn that back on...

I view LC as any other investment - it's money that I can afford to play with.  It'd be annoying if they totally tanked, but I don't have enough in there that it would do me that much long term damage.

[Fudge102]

I turned mine back on about two weeks ago.  Kinda wish I had a smaller amount invested in it now, but that's only because I don't want to put another 5k in to get the bonus!  I'd love to though but I'm happy where I'm at.  Like Syonyk said, it's long term.  The return rates have been good so I can't complain about 98% of the loans.

[Rhoon]

I saw the update and I'm one of the ones who turned off automatic investing. With only $6K in the account, I'm not overly worried; they can still service the debts if the company goes under. Their collection practices need some work though, even if it meant a small uptick in fees for the service. Calling someone every weekday during work hours and not leaving a message doesn't do much in way of getting a customer to come back to the table and catch up on payments.

Like others have said, it's an investment and I'm getting 8%; not bad considering the charge offs.