Net income. All these loans are made to borrowers, and are supposedly backed by their credit, and intentions of paying back, so why is it that collection efforts are not rigorous to pursue the late, as well as defaulted loans, to get monies back? I am still investing and will continue to do so. I think the opportunity for borrowers to default and suffer less negative consequences than other borrowing options makes lending club vulnerable. To my knowledge Lending Club does no verification of address and income for investors, but as part of the investor agreement you have to verify that all the information you provide is truthful. At what point you have recovered the principle through the monthly payment?