The Federal Trade Commission (FTC) has sued Lending Club Corporation, accusing it with luring consumers into predatory loans with promises of “no hidden fees” when in fact, according to the FTC, Lending Club added on hidden up-front fees of up to thousands of dollars to the loans it made to unwary consumers. Lending Club was also alleged to have violated numerous other lending law violations including continuing automatic payments from their victims’ checking accounts after the customer had cancelled the automatic payment option or even after having paid off their entire loan. I will keep you informed as to the progress of this legal action.
TIPS
Legitimate lenders rarely ask for advance fees.  They usually deduct fees from the loan amount.  Check with your state’s attorney general or the FTC if you have questions about an unfamiliar lender.  And if the loan requires an advance fee, don’t do it.  Chances are it is a scam.  Also, even if you don’t have to pay an advance fee, always be sure the lender is legitimate before you provide any information such as your Social Security number which could be going to an identity thief who is merely using the promise of a loan as a ruse to obtain personal information from you. Always make sure you totally understand any loan documents before signing them, which generally means having a lawyer review the documentation for you. Remember, there is rarely anything “fine” in “fine print.”
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