In 2018 I told you that the Federal Trade Commission (FTC) sued Lending Club Corporation, accusing it of luring consumers into predatory loans with promises of “no hidden fees” when, in fact, Lending Club added hidden up-front fees of as much as thousands of dollars to the loans it made to unwary consumers. Lending Club also violated numerous other lending law laws 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.

Now, after a settlement was reached between Lending Club Corporation and the FTC, 9.7 million dollars is being sent by the FTC to victims of the scam.  For more information about the details of the refunds, go to the tab marked “FTC Refunds” in the middle of the first page of Scamicide.com

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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