The FTC said LendingClub deducts these hidden fees from issued loans to borrowers even though they promise they are no hidden fees. The lender allegedly takes payments out of consumers’ bank accounts, even after loads are paid off or when automatic payments are canceled.
According to the complaint, some consumers saw their bank accounts deducted twice for payments.
LendingClub, which is based in San Francisco, is one of the biggest peer-to-peer lenders with a website that lets consumers apply for loans that individual investors or financial institutions like credit unions and bank fund.
A LendingClub spokesman said the company contends that the FTC is wrong and are frustrated by the inability to resolve the matter with the current leadership in the agency.
According to the FTC, it’s possible that thousands of dollars for upfront fees were taken from consumers’ loans, and they believe the company knew that consumers were not made aware of these fees before the deduction.
