Investors: a 15% servicing fee applies to the interest portion of each payment (including interest recovered after default). No investor origination fee is charged. Borrowers: a one-time origination fee of approximately 3.00%-9.99% of loan principal (deducted at funding) and potential late fees per the loan agreement. Third-party collection costs and legal expenses may reduce the Amount Due if collections are needed.
The minimum per Note is $50 (orders are accepted in $0.01 increments). To round funding of a listing, LOFF may issue one “Residual Note” under $50.
As a business policy at this time, sales are limited to verified Texas residents. Investors enroll, complete identity verification, link an account, and must satisfy LOFF's financial suitability checks before placing orders.
A listing must reach 100% funding within a five-day window to be accepted. LOFF does not place funds in escrow. Your bank account is debited after LOF accepts your subscription (i.e., when the listing reaches 100%). Following ACH settlement, LOF disburses loan proceeds to the borrower and simultaneously issues the corresponding Note(s).
Borrowers may prepay at any time without penalty. Prepayments are included in the calculation for that period (100% of principal applied + 85% of interest applied, net of the servicing fee), and they may reduce or eliminate future Amount Due. Notes have no make-whole, yield-maintenance, or prepayment premium; you bear reinvestment risk.
Amount Due tracks amounts applied to principal and interest. If a borrower payment is applied solely to a late fee or other non-interest charge, the Series Amount Due for that event is $0 (you'll see a Zero Amount Due notice). If a prior borrower remittance is returned/reversed after LOF has remitted to you, LOF may claw back the overpayment via ACH debit per the subscription agreement or offset against future Amounts Due for that Series.
LOF services Borrower Loans using commercially reasonable efforts and may refer accounts that are 30+ days past due to a third-party collection agency (generally within five Business Days unless a hardship plan/cure is in process). Charge-off is generally considered around 120 days past due. Collection agencies may retain up to 50% of recoveries plus legal/transaction fees. Post-charge-off recoveries, if any, flow into the calculation when applied.
Only in limited, defined events: (1) verifiable identity-theft default; (2) Risk-Rating Failure caused by material data/software error at posting; or (3) Auto-Invest Error (order accepted outside your saved filters). Remedies are repurchase at outstanding principal and/or a prospective yield adjustment, as defined. Ordinary credit underperformance is not covered.
Notes are issued in electronic, registered form and are not exchange-listed. Transfers require compliance with federal/state securities laws; there is no assurance any trading market will develop. Expect to hold Notes to maturity.
LOF currently offers unsecured personal loans originated on the platform. As disclosed, program scope focuses on terms of approximately 2-24 months and principal amounts currently in the low thousands (e.g., a working range such as ~$250-$5,000 referenced in program descriptions). Borrowers may prepay without penalty.
The platform uses third-party services (e.g., bank-link/identity verification) to verify applicants and enable ACH debits/credits. Where available and appropriate, Same Day ACH, FedNow®, or RTP® may be used, subject to bank limits and cut-offs. ACH entries are originated by partner ODFI banks via the platform's connections.
The Notes are speculative and involve a high degree of risk. You could lose some or all of your investment. Concentrating in a single Note increases the impact of any one borrower's performance. Many investors prefer to diversify across multiple Series, but diversification does not eliminate risk.
Tax treatment is uncertain. LOF treats the Notes as debt instruments with original issue discount (“OID”) for U.S. federal income tax purposes and intends to file informational returns as required under that treatment unless the law changes. The IRS is not bound by LOF's view and could assert a different characterization (which could affect the timing, amount, and character of income). You should consult your tax advisor about your specific situation and any forms LOF may furnish.
LOF may take commercially reasonable servicing actions (e.g., short-term deferrals, re-aging, maturity extensions within stated program limits, APR reductions, settlements, charge-offs) without Noteholder consent if consistent with the Servicing Agreement. Any change flows through the Amount Due calculation as applied amounts occur. LOFF may amend Notes without holder consent only for permitted administrative/legal updates or to mirror allowed servicing changes; core payment covenant and principal are preserved.
Eligible consumers complete identity/bank verification and underwriting on the platform; Borrower Loans are unsecured personal loans. LOF does not verify borrowers' post-funding use of proceeds and, after funding, does not confirm how proceeds are used.
LOF may implement hardship relief (e.g., deferrals, extensions, re-aging, APR reductions) consistent with the servicing standard. Federal laws like the Servicemembers Civil Relief Act (SCRA) and the Military Lending Act (MLA) can cap rates or delay collection activity for covered borrowers, which may reduce or delay Amounts Due.
LOF relies on third-party services and electronic payment rails, and operates with certain on-premises systems; outages, vendor changes, cyber incidents, natural disasters, or operating disruptions could delay originations, payments, or statements and may adversely affect performance or timing of Amounts Due.
A successfully applied Promo Code will result in the success of the operation using the Promo Code and the resulting coupon can be viewed at the borrom of your Account Page.
We will "refund" your use of the Promo Code, meaning that you may use it again within the applicable uses described by the Promotion - unless otherwise stated.
Used Promo Codes and the coupons resulting from their successful application can be viewed at the bottom of your Account page. If a coupon was incorrectly applied or failed to be created when using a Promo Code, please contact us about the issue at [email protected]
Details will be conveyed as near as possible to the Promotion itself.
The medium conveying the Promotion to you should state the applicable goods or services of the Promtion. However, if it does not, there is no penalty for attempting to use a Promo Code on any good or service that the Promo Code is not applicable to and will only result in a message stating that the Promo Code is not applicable to that good or service.
Yes. You may use any remainder until exhausted.
The Amount Due calculated by the reference loan and payments dates of the amount due do not change in any way. Only the purchase price of the note is discounted.
Anyone who has not already signed up with Crowdcash and linked a bank account.
No. The promotional awards from referrals are non-transferrable.
No. There is no cap or limit to how many referral rewards someone may earn.
Referral rewards are earned when a new user signs up for Crowdcash and links a bank account.