New York state’s financial regulator subpoenaed Lending Club Corp (LC) on Wednesday over its business practices related to interest rates and fees charged to New Yorkers, a person familiar with the matter said.
The move by the New York Department of Financial Services follows the opening of a U.S. Department of Justice investigation of Lending Club, whose chief executive, Renaud Laplanche, was forced out last week after an internal probe found the company had falsified documentation when selling a package of loans.
A Lending Club spokesperson could not be immediately reached for comment.
