Business ProfileforLendingClub Corporation

On April 25, 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub Corporation, dba LendingClub. Case #: 3:18-cv-02454.

The FTC alleges that LendingClub promised consumers “no hidden fees”, but when the loan funds arrived in consumers’ bank accounts, hundreds to thousands of dollars were found short of expectations due to a hidden up-front fee that Defendant deducts from the consumers’ loan. The complaint also alleges that the company mislead consumers into thinking their loan had been approved, when Defendant knew many consumers would never receive a loan. Consumers then believed that funds were forthcoming and did not apply for credit with Defendant’s competitors. Other allegations include: continuing to charge consumers who cancelled their automatic payments or had paid off their loans entirely; and withdrawing double payments from accounts, as well as failing to provide consumers with privacy notices.

On July 14, 2021, without any admission of wrongdoing, Lending Club agreed to pay $18 million to settle the above charges brought by the Federal Trade Commission. In addition to the monetary payment, Lending Club is barred from making misrepresentations to loan applicants and will require that the company clearly and conspicuously disclose the amount of any prepaid, upfront, or origination fee and the total amount of funds that borrowers will receive.

Consumers who chose to receive a PayPal payment will have 30 days to accept it. Consumers who chose to receive a check will have 90 days to cash it. Recipients who have questions about their refund should call the refund administrator, Rust Consulting, Inc., at 833-630-1417. The Commission never requires people to pay money or provide account information to get a refund.