The Federal Trade Commission is sending payments totaling more than $9.7 million to 61,990 consumers who were charged hidden fees by LendingClub Corporation.
These payments are the result of a claims process conducted by the FTC in February 2022. It is the second distribution of funds in this matter and brings the total amount refunded to consumers to more than $17.6 million.
Consumers who chose to receive a PayPal payment will have 30 days to accept it. Consumers who chose to receive a check will have 90 days to cash it. Recipients who have questions about their refund should call the refund administrator, Rust Consulting, Inc., at 833-630-1417. The Commission never requires people to pay money or provide account information to get a refund.
The FTC sued LendingClub in April 2018, charging that the company falsely promised loan applicants that they would receive a specific loan amount with “no hidden fees,” when in reality the company deducted hundreds or even thousands of dollars in hidden up-front fees from the loans. The FTC also alleged that LendingClub told consumers they were approved for loans when they were not—which delayed applicants from seeking loans elsewhere—and took money from consumers’ bank accounts without authorization. LendingClub agreed to a settlement in July 2021 that bars them from making misrepresentations to loan applicants and requires that the company clearly and conspicuously disclose the amount of any fees and the total amount of funds that borrowers will receive.
The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of Commission refunds. In 2021, Commission actions led to more than $472 million in refunds to consumers across the country, but the U.S. Supreme Court ruled in 2021 that the Commission lacks authority under Section 13(b) to seek monetary relief in federal court going forward. The Commission has urged Congress to restore the Commission’s ability to get money back for consumers.