LendingClub Accused by U.S. of Deception on Hidden Loan Fees

April 25, 2018, 6:02 PM UTC

LendingClub Corp. was sued by U.S. officials for allegedly deceiving consumers over hidden fees and charging borrowers even when they paid off their loans.

The Federal Trade Commission said in a complaint that LendingClub deducted hidden fees from loan proceeds issued to borrowers. The company also withdrew double payments from consumers’ accounts, the agency said.

LendingClub’s “actions have caused substantial injury to consumers,” the FTC said in the complaint filed in federal court in California.

A representative of Lending Club didn’t immediately respond to a request for comment.

Lending Club shares fell as much as 10.4 percent on the news and were down 6.4 percent to $3.05 at 12:10 p.m. in New York.

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