I made a serious error while attempting to populate my test
cases with new notes. One of the test cases is going to be a control group. I
decided to populate this group by turning Automated Investing back on for a bit.
I set my desired allocation to blended over all the grades. My previous
experience was that this Automated Investing filled a few nates at a time. Their
documentation indicated they would check for adding notes four times a day.
That’s the same number of times they add new notes so I assumed they would only
be drawing from the newly added notes.
Well, that assumption was WRONG. The next morning, the
available cash in my account had dropped to about zero and I was the proud
owner of 151 grade A and B notes. Certainly not what I wanted. I sent an Email
to Lending Club explaining the situation and asked if I could cancel these
orders. They responded that it could be done, but I would need to supply them
with the details on the orders and notes. I sent them a spread sheet with the
151 notes identified.
I got back a response “All Notes purchased as part of
these orders will be removed from your account and the full investment amount
of all Notes eligible for cancellation will be refunded”. But it also contained
another observation. “The
cancellation process may take 6-8 weeks to complete, during which time you may
receive emails or see Notes associated with these orders in your account.”
I assumed that those in funding could be easily cancelled,
but apparently not. The notes are all still in my account and 135 are now
listed as “Issued & Current”, while 16 are “Not Yet Issued”. My guess is
that they won’t be cancelled until after the first payment is made. Then what?
Does Lending Club sell them on FOLIOfn? Since they indicated that my funds will
be restored, do they keep the first payment? I’ll keep you posted.
Meanwhile the disappearance of my available cash will
stretch out the time required to fill the remaining test cases. So reporting on
these will be somewhat delayed.
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