Specific Auto Problems

Lending Club WebBank and Debt Buyer Claims

Posted by Howard Gutman | Jan 17, 2024 | 0 Comments

Many consumers are facing claim related to Lending Club loan.  There are defenses and we have successfully negotiated a number of claims.

1. Who is Lending Club

LendingClub is a Delaware corporation headquartered in San Francisco, California.  LendingClub operates an “online peer-to-peer lending platform” since 2007 “that connects borrowers and investors.”  “Through LendingClub's platform, consumers can apply for and obtain personal loans underwritten and issued by a third-party bank, WebBank.” LendingClub's platform also “facilitates the purchase of interests
in the loans by retail and institutional investors.”  LendingClub is not a lender; instead, it “services the loans, manages customer service, and acts as an intermediary between borrowers and investors.”  More
than three million customers “have used LendingClub's platform to obtain loans worth, in aggregate, more than $43 billion.” Fed. Trade Comm'n v. LendingClub Corp. Case No.18-cv-02454  (N.D. Cal)

2. Lending Club Deception with Fees

The Federal Trade Commission investigated Lending Club and Webbank and found a pattern of undisclosed fees.  From 2012 until mid-2018, LendingClub advertised its personal loans to consumers through mail, email, and online advertisements as containing “no hidden fees.” (Dkt. Nos. 81 at ¶ 10 & 145-4 at ¶¶ 1, 31-38.) During
that time consumers could apply for personal loans directly through LendingClub's website.

An FTC investigation found multiple violations in Lending Club practices.

“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 based on a facial review of the loan application flow itself. To recap: LendingClub's advertisements and loan application flow 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,,, LendingClub 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.

3. Remedies 

The nondisclosure of fees can violate state and federal laws.  We have negotiated substantial reductions of claims based upon this.

Call Now for a Free Consultation on Defenses to Lending Club Claims
Office (973) 598-1980, Cell (973) 479-5515

About the Author

Howard Gutman

Hiring an attorney can be a stressful and confusing situation.  You want an expert, honest, personal approach to your case.  The Law Office of Howard Gutman has been fighting for consumer rights and representing commercial interests for over 20 years.  We have a deep knowledge of fraud, consumer,...


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