LendingClub has revealed that the majority of its borrowers have avoided signing up to its hardship plans during the coronavirus crisis.
The US peer-to-peer lending giant, which lends to consumers and businesses, said 90 per cent of its borrowers have not taken-up its two-month ‘skip-a-pay’ forbearance programme.
Since its launch on 11 June, the majority of borrowers are now opting into its interest-only hardship plan, LendingClub said.
LendingClub said repayment rates remain high, late payments are low and its newer loans have a higher credit quality.
The platform said it expects losses to peak between the end of this year and the first quarter of 2021 and expects its prime portfolio to return five per cent.
“We have continued to innovate and offer new solutions to borrowers looking for help,” LendingClub said.
“We launched interest-only hardship plans and are planning to launch additional plans during the second half of the year.
“We also extended the waiving of late fees for borrowers to provide immediate relief. To help protect investor returns, since March we have taken swift and sustained action across the platform.
“We tightened underwriting on new loans, increased interest rates on new loans, added capacity to help borrowers over the phone, and launched self-service options online for borrowers looking for help.”