Sunday, May 01, 2011

Thumbs Down Rating on Lending Club's Move to Ban Unique Lender Questions

Until recently, I have grown to be a fan of Lending Club... So much so that I was also contemplating setting up a self directed IRA with the company. However, Lending Club's recent move to ban unique borrower questions has me a little uneasy parting with my money.

Take for instance people that ask for a loan to move but make no comments about their job prospect in their new location. You would think it would be pertinent to ask about their employment. Instead, Lending Club does not currently allow the lender to ask a question on this point. Instead, you have to rely on the credit history based on "past" employment.

I seriously wonder if other lenders have grown reluctant like me to lend money to borrowers on the site unless the borrower clearly communicates their situation.


pluggedinfinance said...

I'm still lending at lendingclub; however, I find that I have grown a little more picky now that I can't ask unique lender questions.

Unknown said...

Completely agree with you, I find this very concerning going forward and think it makes more sense for LC to allow lenders to submit questions that could be "okayed" by a middle man with the understanding that ALL appropriate and relevant questions will be submitted.

Jeff said...

What's to stop folks from telling you what you want to hear?