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Anyone have info or experience with lending clubs?

I would have a lot of questions. There are internet microloans systems on the internet which may pool money and lower your risk. If it is up to you to pick the loan and vet it then I would worry I didn't have the time or expertise to do it.

PS -- I was in one that turned out to be a scam many years ago. The club investor was supposed to be doing 2nd mortgages with 12% return ( mortgage rate was 7-8 at the time). Instead he was investing in high risk ideas with a hope of keeping 1/2 of a supposed 25% return and paying his investors with the other half. Once a couple failed he turned it into a ponzi scheme where new investors unknowingly paid the older investors needing funds. The wife called on day and told me to turn on the radio because the news was talking about how our fund was under investigation by the state.

BTW - where did I meet this guy?? He preached about financial responsibility in our church one Sunday. Ultimately, it was a great but costly learning experience.
 
I tried Lending Club a few years ago. Threw $2,000 into a mix of loans. Some A+, B, C and a few F (a gamble to try and get high returns). I will try to sum up my investment experience.... A waste of my time and money!!!!

A few A+ borrowers paid and paid off very quickly, so little return.
1 B borrower paid off in short order. Did not make much.
All C and F's defaulted and went to BK, either Ch 7 or 13. I inquired to Lending Club about the reorganization of debt and negotiations of the debt (On borrowers Ch 13 BK's). Lending Club said they do not try and negotiate with the BK courts on behalf of their investors. 100% loss. Period! Even though other creditors will renegotiate to try and maintain some of their principal and receive a small return on the payment structure plan, Lending Club made absolutely 0% efforts and just let my investment go. If the borrower files a Ch 7, there is nothing that can be done.

Then I thought about the mentality of the some borrowers. Get this loan from Peer to Peer, long enough to increase credit score to they can get a new loan from a major institution for lower terms. Makes sense for them, but not for the investor ESPECIALLY when Lending Club offers NO SUPPORT.

Based on my experiences and opinion.
 
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