Sonn Law Group has learned that the Federal Trade Commission (FTC) filed a lawsuit against peer-to-peer lending company, LendingClub Corporation (NYSE: LC).
LendingClub is charged with violating both the FTC Act and the Gramm-Leach-Bliley Act. The FTC alleges that LendingClub deceived consumers on its fee structure, falsely promising that they would receive a loan with “no hidden fees.” In actuality, the company deducted hundreds to thousands of dollars from the loans in hidden up-front fees.
LendingClub has also been accused of overcharging consumers and continuing to charge those who had canceled automatic payments or paid off their loans. The FTC also alleges that LendingClub would tell loan applicants that their loan had been backed by investors when it had not yet been approved.
In its complaint, the FTC said LendingClub had been made aware in the past that it was misleading customers but ignored warnings that the deception could lead to legal action. This kind of conduct makes it difficult for consumers to make informed choices about loan offers and has various negative financial implications for consumers as well.
Following the news of the FTC’s lawsuit, LendingClub stock fell 15%, to a record low $2.77. This drop causes significant harm to investors. The experienced securities fraud attorneys at the Sonn Law Group are interested in speaking with any individual who has ever invested money in LendingClub Corporation.
Please contact Sonn Law Group to explore your legal options. Call us at 303.912.3000 or contact us online now.