WASHINGTON—Payments totaling more than $9.7 million are being sent to more than 61,990 consumers who were charged hidden fees by LendingClub Corporation, according to the FTC.
The payments are the result of a claims process conducted by the FTC in February 2022, and mark the second distribution of funds related to the LendingClub fees, bringing the total amount refunded to consumers to more than $17.6 million.
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 the company 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.