$10 Million in Refunds for Online Lender Customers: Do You Qualify?
Some $10 million in refunds are being sent back to customers of the LendingClub online lending service as part of a Federal Trade Commission settlement over hidden fees and other charges.
The Federal Trade Commission said LendingClub falsely promised loan seekers they would receive a specific money account with no “hidden fees,” when in reality the company deducted hundreds or even thousands of dollars from hidden upfront loan fees. The FTC also alleged in a 2018 lawsuit that the company told consumers they had been approved for loans when they weren’t and took money from customers’ bank accounts without authorization. .
More than 15,000 LendingClub customers will receive refunds from the FTC through PayPal. These recipients have until February 16 to accept payments. Additionally, the FTC is emailing customers who took out loans before January 6, 2017, providing them with information on how to request a refund. Customers who do not receive an email but believe they are eligible should contact the Claims Administrator at 833-630-1417.
The deadline for additional consumers to file claims is February 16.
The settlement also prohibits LendingClub from making future misrepresentations to loan applicants and requires it to disclose the total amount of all prepaid, upfront or origination fees and the total amounts of funds that borrowers will receive.