Back in April of 2018, the Federal Trade Commission sued the online lending marketplace LendingClub, asserting that the company was falsely promising loan applicants they could receive a specific loan amount along with an important qualifier. There are no hidden fees.
In reality, however the federal agent brought suit against the company for allegedly taking hundreds to thousands of dollars in “hidden upfront fees from loans” and claiming that LendingClub took money from customers’ bank accounts that it was not authorized to use. The company also claimed that it told customers they were approved for loans, but they weren’t. As part of the finalization of the legal action against the lender, there is another important development.
FTC LendingClub reimbursement
Because of all that, the FTC announced in recent days that it’s returning more than $10 million to customers who were charged undisclosed fees by LendingClub. The commission is distributing refunds directly to more than 15,000 LendingClub customers. It encourages additional LendingClub customers who are eligible to request refunds.
However, there’s an important addition to this news. This link provides a breakdown state-by-state of FTC refunds. Overall, it shows more than $11 billion returned to consumers by the FTC. To more than 10.5 million recipients, to be exact, across 117 cases.
In 2020, the FTC says its actions led to more than $483 million in refunds to consumers across the country. However, the United States Supreme Court ruled earlier this year that the FTC lacks authority under Section 13(b) to seek monetary relief in federal court going forward. The FTC’s lawsuit against LendingClub was filed just in time.
Lawsuits and Settlements
If the LendingClub situation is affecting you, here are some other things you should know.
LendingClub agreed to pay $18 million last year to settle the three-year litigation with the FTC. The commission’s suit claimed that some borrowers were charged origination fees of $1,000 — and more.
The FTC says it’s sending refunds out via PayPal to 15,748 LendingClub customers. These are customers who complained about hidden fees to the FTC and to the company. And those recipients have less than a month (until February 16, 2022) to accept those payments. Any recipients with questions about their payments should call the refund admin