lendingclub-lawsuit-investigation 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.

Sonn Law Group is investigating claims regarding Joel Eziekel Blum (CRD #4905379, Goshen, New York). Blum recently submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 days. See FINRA Case #2014040186601. Blum was associated with Merrill Lynch from May 2008 until his termination in February 2014. Blum has been associated with Ameriprise Financial Services, Inc., since February 2014. The Form U-5 filed by Merrill Lynch to terminate Blum's registration states that he was discharged for "conduct including failure to contact clients in advance of entering orders in non-discretionary accounts and mismarking order tickets as unsolicited." FINRA found that Blum executed discretionary transactions in customer accounts without written authorization to do so. In addition, Blum mismarked order tickets in connection with these transactions, inaccurately indicating that the trades were unsolicited, according to FINRA. In entering into the AWC, Blum neither admitted or denied FINRA's findings. Pursuant to FINRA Rules, member firms are responsible for supervising a broker's activities during the time the broker is registered with the firm. Therefore, Ameriprise or Merrill Lynch may be liable for investment or other losses suffered by Blum's customers. If you were a client of Ameriprise, Merrill Lynch, or Blum, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our "contact form."
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