Tuesday, January 18, 2022
Bureau of Consumer Protection: Credit and Finance
- The Commission is returning over $10 million to consumers who were charged hidden fees by online lender LendingClub Corporation. The disbursement stems from the FTC’s 2018 lawsuit against the corporation, in which the agency alleged that LendingClub falsely promised loan applicants that they would receive a specific loan amount with no hidden fees, when in fact the company deducted hidden up-front fees from the loans. The FTC is sending refunds to 15,748 customers who complained to the company or the FTC about the fees; the agency will also be reaching out to additional Lending Club customers who repaid loans during the period at issue. This order predates the FTC’s loss of its ability to obtain equitable monetary relief in federal court for consumers following an April 22, 2021 Supreme Court decision. Congress has not yet acted on the FTC’s request to reinstate this power.