As of Feb 24, 2017, we are eliminating the grace period interest waiver in order to better align borrower payment incentives as we seek to deliver solid returns to our investors. Please see details below and don't hesitate to let us know if you have any questions.
- Lending Club historically offered borrowers a 15-day “grace period” in which they could make payments after their due date without penalty. Historically, if borrowers made a payment within the first 15 days after their due date:
1) They would not accrue a late fee for paying their amount due late; and
2) Any interest accrued during grace period would be waived.
- Under the new policy, if a borrower pays between 1-15 days past their due date, they will still receive the benefit of not accruing a late fee, but they will now have to pay the additional accrued interest as a result of their late payment. This will have the effect of additional interest being accrued over the life of the loan due to the incremental higher principal balance throughout the life of the loan. Any additional interest accrued over the life of the loan ultimately has effect of increasing the loan maturity by one month.
- New policy will be applied on all payments going forward for all loans as of February 24, 2017.
As always, thank you for your business, and feel free to reach out to email@example.com