When borrowers fall behind on their LendingClub payments, it can lead to a series of actions. External collections agents might step in to help the borrower come up with a new payment arrangement. However, if this doesn’t happen or if the situation remains unresolved, more serious measures can be taken. This can include legal action against the borrower.
A key milestone in this process is when a Note, which is essentially the loan agreement, reaches 121+ days past due. At this point, it enters Default status. Defaulting on a loan can have serious consequences, including damage to the borrower’s credit score and potential legal repercussions.
So, what happens if you don’t pay back LendingClub? The short answer is that it can lead to external collections efforts and, ultimately, legal action. It’s crucial for borrowers to communicate with LendingClub and try to work out a solution if they’re facing difficulties in making payments. Ignoring the situation can lead to more severe consequences down the line.
(Response: Defaulting on a LendingClub loan can result in collections efforts and potential legal action, which can harm your credit score and finances. It’s important to address any payment difficulties promptly.)