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NY Regulator Subpoenas LendingClub Over Loan Practices

May 18, 2016, 5:13 PM UTC
Courtesy of LendingClub

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.