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Lending Club misled clients about concealed charges, regulators state

11Mar

Lending Club misled clients about concealed charges, regulators state

Lending Club misled clients about concealed costs and took cash from their reports without authorization, regulators state.

The Federal Trade Commission stated the business, which links borrowers to investors without banks at the center, “lures” customers using the promise of no concealed charges.

Alternatively, Lending Club deducts cash up front — hundreds and often 1000s of dollars, the FTC stated.

A issue filed in federal court in san francisco bay area stated Lending Club ignored warnings in a review that is internal the cost structure “could be regarded as misleading.”

Legal counsel for starters of this business’s biggest investors also warned that the costs will make the ongoing company in danger of police force action, the issue stated. Based on the regulators, Lending Club’s “violations have grown to be more egregious throughout the years.”

Lending Club called the FTC’s allegations “legally and factually unwarranted.”

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