Lending Club deletion.

onthemove · ‎07-07-2020

I had a loan go belly up 5 years ago. Does anyone have any experience with having a negative account removed from their CR? I was getting tons of CA letters and they all seem to have dried up. I know I can reach out to them (Lending Club), and ask for pay-to-delete, but there hasn't been any update from them on my CR in two years. (After three years they can't sue me) When they don't think they will get anything from a bad account, do they just write it off and move on and forget about it?

blindambition · ‎07-07-2020

The TL will stay on your reports for 7 years from DOFD. Never seen a PFD from that lender. Also don't dispute. It will come back validated. Potentially dinging scores further.

You can settle and try a GW campaign, not sure how that will pan out. Settling will stop updates on reports. The only other choice is waiting out the 7 years.

blindambition · ‎07-07-2020

I'd also pull a report. See if OC and CA are both reporting. If only CA is reporting, a PFD might be possible. Depending on CA.

Anonymous · ‎07-07-2020

@onthemove wrote:
I had a loan go belly up 5 years ago. Does anyone have any experience with having a negative account removed from their CR? I was getting tons of CA letters and they all seem to have dried up. I know I can reach out to them (Lending Club), and ask for pay-to-delete, but there hasn't been any update from them on my CR in two years. (After three years they can't sue me) When they don't think they will get anything from a bad account, do they just write it off and move on and forget about it?

Creditors usually dont just forget debts once the SOL or even the credit reporting period is over. A debt is debt and is will always be owed, but the older it is, the less they can do to you to try to collect on it.

After the SOL passes, they can no longer sue you, but they definitely can put it on your credit reports and update it monthly or frequently or never again. They can enlist a CA to assist them in collecting the debt or sell the debt to a debt buyer (CA).

Once the 7 year reporting window passes, they can no longer report on your credit reports, but they can pass the debt around, selling it to different CAs that will continue to contact you about paying it off. You can do a cease and desist with one CA, but like I mentioned above, they can pass it along to another CA, and the cease and desist will not apply to them, so you will have to do it again. They can even HP your credit without your permission.

Original creditors just really do not do PFD. It never hurts to ask, but do not expect it. CAs are usually the one's to do PFD. If they dont do PFD, which they do not have to, then you have a double whammy on your CRs for the next 5 years. (You stated above it has been 2 years from DoFD). With 5 years remaining, I would definitely try to deal with it, unless you really just do not plan on using your credit. Also, remember thatnif the CA does do PFD, that will not delete the original account from your credit reports, but it saves you from the double whammy. Even if the original account remains, having the balance paid usually helps you anyway by reducing your utilization and not having it update any longer, so it can just slowly fade away for the next several years until it falls off.

Good luck!

Anonymous · ‎07-07-2020

Dealing with LendingClub myself right now... OC is reporting, but it's been sold off. I settled with the CA on 4/30/2020, but my report still hasn't been updated. I'm hoping I can at the very least get them to report it paid here soon so the dust can settle before I go apply for a mortgage next year. Good luck OP!

Anonymous · ‎03-08-2021

@onthemove @Anonymous Any luck/update with LendingClub? I also have a LC account with CA (neither OC or CA is reporting?!) and would love to hear your challenges/successes. 🙂

IluvuscOH · ‎09-20-2021

@Anonymous wrote:
@onthemove @Anonymous Any luck/update with LendingClub? I also have a LC account with CA (neither OC or CA is reporting?!) and would love to hear your challenges/successes. 🙂

No Successes they end up selling and the new debt owner field in civil court. I called them we worked out a agreement to dismiss with prejudice.

SoonerSoldier33 · ‎09-20-2021

@onthemove wrote:
I had a loan go belly up 5 years ago. Does anyone have any experience with having a negative account removed from their CR? I was getting tons of CA letters and they all seem to have dried up. I know I can reach out to them (Lending Club), and ask for pay-to-delete, but there hasn't been any update from them on my CR in two years. (After three years they can't sue me) When they don't think they will get anything from a bad account, do they just write it off and move on and forget about it?

A derogatory tradeline can remain on your reports for 7 years +180 days from the Date of First Delinquency (DoFD). You should go to annualcreditreport.com to see how this account is being reported. There should be a charged off account from Lending Club. It may or may not have a balance depending on if they sold the debt to a CA. If it has a $0 balance, then Lending Club sold the debt and is no longer in the picture. If it does have a balance, Lending Club still owns the debt, and has just hired collection agencies to collect on their behalf. These agencies may or may not have reported a collection account on your reports on top of the CO, but they can. You need to see how it's being reported to know best what to do. You can wait out the 7 1/2 years, or see who owns the debt now, and try to work out a settlement agreement. Lending Club is 99% unlikely to remove that CO from your reports regardless. Don't dispute it. When it comes back validated, you'll have a nice, fresh CO smash into your credit scores. A collection agency might agree to a PFD which would delete the collection from your reports. The SOL and credit reporting timelines don't stop a collector from trying to collect debt. You owe the debt forever, and they can still try to collect. They can't however legally sue you for it if it's past the SOL, and they can't report it to the CRAs after 7 1/2 years.