Accounts closed

My Lending Club IRA and custodial account with Strata Trust are now both closed. I can’t say I’ve received any official confirmation from either, but I’ve withdrawn all my funds. Lending Club still shows the one very late note, but I did submit the paperwork to forfeit all notes. Strata Trust sent me my last check and shows a zero balance.

I began the process by submitting the appropriate form to Lending Club on Wednesday, April 25^th. They acknowledged receipt and sent it along to Strata. I didn’t hear anymore from either and a week later I called Strata. They seemed totally unaware of my submission. When prompted they located the paperwork and indicated they would process it. I got the final check on Monday, 13 days after the submission. There was a $50 fee from Strata for terminating the account.

I am quite happy to have this behind me. I spent too much time tracking the Lending Club account. Dealing with Strata wasn’t particularly easy. I’m glad my wife won’t have to deal with this when I’m gone.

I will followup with a post reviewing my history and rate of return with Lending Club. I also plan on posting my views of using Lending Club as an investor. Follow me on Twitter, @billlanke, to know when these are posted.

Mid-week update on closing the accounts

My last update on closing my Lending Club IRA and custodial account at Strata Trust was Saturday. Nothing occurred on Sunday as is typical with these two companies. On Monday, Strata creditted my account with the second transfer of the recovery funds I was credited with at Lending Club, $!2.25.

Tuesday was May 1^st and Lending Club charged off 2 of my very late notes. This is typical and not unexpected. The last payments on these notes were made on January 10^th and 15^th. The remaining note was last paid on January 17^th. Presumably this would be charged off at the middle of May had I not intervened.

Nothing unusual has happened to my Lending Club account. I can still log on and access my account as though I had not submitted the close request 6 days ago. Since I agreed to forfeit my remaining notes, I expected to see some change. Strata Trust did receive my last transfer of $6.89.

Strata received my last transfer on Wednesday May 2nd. I called Strata and they needed to check to see if they had my forfeiture letter (Lending Club indicated a week ago that they had sent it). They did and said they’ll process it today and mail a check.

I’m working on summarizing the return rate that I received on my Lending Club notes. I’ll put a notice on Twitter, @billlanke, when I post this.

Status update on closing my accounts

This is an update on the process I am using to close my Lending Club IRA with Strata Trust as the custodian. I contacted Lending Club with my desire and they sent me a form via Email that was a combined Lending Club and Strata form. I detailed the requirements in my previous post. I completed the form and submitted it to Lending Club on Wednesday April 25^th. I received an Email from Lending Club within a couple of hours indicating that they were forwarding it to Strata and would let me know when it is completed.

I checked my accounts on Thursday morning and there weren’t any changes to either. I did have some reaming cash in Strata. Besides the 3 late notes, I also had $164.81 in cash at Lending Club. I assumed that this would have been moved. I initiated a withdrawal of the cash. A withdrawal from a Lending Club IRA goes to the custodian (Strata) and takes a day. The cash immediately disappears from the Lending Club account.

On Friday morning, the cash had not gotten to Strata, not unexpected. But there was an additional $12.25 cash in my Lending Club account. I withdrew it to my Strata account, leaving zero again in the Lending Club account.

On Saturday, the first withdrawal for $164.81 was in the Strata account. But again, there was more cash in Lending Club, $6.89. I initiated a withdrawal of this to Strata. I was curious about why I was getting money in the Lending Club account, so I checked the activity for the last few days. It turned out that these are recovery fees from charged off loans. There were over 50 of these recoveries in the last two days. I don’t know if this will continue, or how long it may last.

I’ll probably update the status of this process in the middle of next week. I’ll post on @billlanke on Twitter when I do.