Defending Lending Club Claims

              Defending Lending Club and WebBank Collection Claims 

There have been investigations of lending club and violation of consumer laws.

  1. Excessive Charges and Deception: Assert defenses from the Fed. Trade Comm'n v. Lending Club investigation. There is no dispute that Lending Club made the representation "no hidden fees." A reasonable trier of fact could find that the net impression of "no hidden fees" was likely to mislead. Lending Club's advertisements and loan application represented to prospective borrowers that they could obtain a specific loan amount with "no hidden fees. The loan application then concealed the origination fee behind a tooltip and in a fine print footer. Lending Club received tens of thousands of inquiries and hundreds of formal complaints from consumers regarding the origination fee. Fed Trade Comm v Lending Club Case No.18-cv-02454-JSC (N.D. Ca. 2020) at 7.

  2. Improper Documentation: Challenge the adequacy of documentation supporting the debt, questioning its accuracy or completeness. Lack of proper documentation can weaken the creditor's case. 

  3. Procedural Violations: Explore potential violations of procedural rules in the debt collection process. Any missteps by the creditor could provide grounds for defense. 

  4. Debt Settlement Negotiation: Consider negotiating a debt settlement with Lending Club. Establishing a new payment plan or negotiating a settlement may be viable alternatives to litigation. 

  5. Arbitration: Arbitration can frequently provide a more flexible and consumer friendly forum that the lender pays for. Consider arbitration (3d party dispute resolution outside of court) and mediation, having a facilitator help resolve claims.

  1. - How to Beat a Lending Club Charge Off 

  2. - Sued for Lending Club Debt? New York Debt Lawyer Can Help. 

  3. - Common Defenses to Creditor Lawsuits 

  4. - Fed. Trade Comm'n v. Lending Club Corp. 

  5. - Common Defenses to Creditor Lawsuits 

  6. - Defenses in Debt Collection Lawsuits