Consumer Alert
FTC: Lending Club misled people about hidden fees
If you need to borrow money to consolidate credit card debt, make home or auto repairs, or move across country, a personal loan can help cover your expenses.
Most personal loans are unsecured, meaning they don’t require collateral like a house or car, and typically have higher interest rates than secured loans.
The FTC recently filed a lawsuit against Lending Club, a company offering personal loans online. According to the FTC, Lending Club has deceptively marketed loans by promising consumers “no hidden fees” but nevertheless charges a hidden up-front fee. Lending Club has told consumers they will get a loan of a certain amount – say $10,000, for example. But when the loan shows up in the consumer’s bank account, it’s for just $9,500. That’s because Lending Club deducted a $500 up-front fee, even though it promised not to charge hidden fees. The complaint also alleges that Lending Club has told consumers they have been approved for loans when they have not, makes unauthorized withdrawals from consumers’ bank accounts, and failed to properly provide customers with required privacy notices.
If you’re thinking about applying for a personal loan, take the following steps:
- Shop around. Different lenders may quote you different rates and terms, so you should contact several lenders to make sure you’re getting the best price.
- Get a list of all fees, including any origination fees. Your loan agreement also could include prepayment penalty fees, late payment fees, bounced check fees, and check processing fees.
- Check your credit report. Regardless of what some lenders say, your credit rating plays a big role in how much you’ll pay to borrow money. Mistakes could lower your credit scores.
For more information, check out our Credit and Loans page.
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All these types are mobsters making $ of the broke and poor. I am deluged with this junk daily. Latest hunting ground for these guys is job boards. The unemployed list too much private info hoping to get a job. Good luck to all and be careful.
In reply to All these types are mobsters by Bones
I went through the same thing. Not only was I not told about hidden fees I was not told about the interest rate they would give me ahead of time. I will never use or recommend the Lending Club ever again.
In reply to I went through the same thing by tazcubano
You can report this to the FTC at FTC.gov/complaint. You can explain what happened and give your name and contact information if you choose. The information you give will go into a secure database that the FTC uses for investigations.
In reply to I GOT A LON ONLINE THEY ALL I by lucketteloise
You can report the loan company to the FTC.
Call the FTC at 1-877-382-4357. The phone number is toll-free.
In reply to I was scammed in February by GULLIBLE GRANDMA
When you give someone an iTunes card, or the numbers from a card, they take control of the value of the card. They can spend the value immediately.
You helped law enforcement by reporting the details of the scam. Law enforcement agencies use the information people provide to help with investigations.
In reply to If you ever took out a loan by Hasmin
You can report this to the FTC at FTC.gov/Complaint. The information you give will go into a secure database that law enforcement uses for investigations. The comments you put here on the blog don’t go into the law enforcement database.