Author Topic: Payment Plans  (Read 36 times)

thezinfan

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Payment Plans
« on: May 24, 2012, 03:22:25 PM »
Hi,

Question about Payment Plans. I have had a few loans miss payments then go immediately into Grace Period/Payment Plan. Many times there is no mention of the borrower being notified of a payment plan in the payment/collection notes. Should one assume that the borrower has agreed to these new terms? The reason i ask is if someone missed a payment and then agrees to pay 5-10 days late per the payment plan (but that date hasn't past yet), I view that as a better situation than someone just missing a payment.

Any thoughts/comments?

Peter

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Re: Payment Plans
« Reply #1 on: May 24, 2012, 08:37:53 PM »
Question about Payment Plans. I have had a few loans miss payments then go immediately into Grace Period/Payment Plan. Many times there is no mention of the borrower being notified of a payment plan in the payment/collection notes. Should one assume that the borrower has agreed to these new terms? The reason i ask is if someone missed a payment and then agrees to pay 5-10 days late per the payment plan (but that date hasn't past yet), I view that as a better situation than someone just missing a payment.

Any thoughts/comments?

This is a tricky one. I have found that some borrowers have a status of "On Payment Plan" but there is nothing denoting that in the notes. I have found that when it says the borrower has agreed to the payment plan then payments do keep flowing regularly. Without that note that suggests that Lending Club has made an offer of the payment plan but it has not been agreed to. LC are tight lipped about their exact collection policy so it is difficult to get an exact answer but my experience has shown that an agreement to a payment plan is a positive.
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