The Federal Trade Commission is returning more than $10 million to consumers who were charged undisclosed fees by online lender LendingClub Corporation. The FTC distributes refunds directly to more than 15,000 LendingClub customers and encourages other LendingClub customers to request refunds.
The FTC sued LendingClub in April 2018, accusing the company of falsely promising loan seekers that they would receive a specific loan amount with no “hidden fees,” when in reality the company deducted hundreds or even thousands of dollars in hidden upfront loan fees. The FTC also alleged that LendingClub told consumers they had been approved for loans when they weren’t and took money from consumers’ bank accounts without authorization.
The FTC sends refunds via PayPal to 15,748 LendingClub customers who complained to the company or the FTC about hidden charges. Beneficiaries have until February 16, 2022 to accept payments. Recipients who have questions about their payments should call the refund administrator, Rust Consulting, at 833-630-1417. The FTC never requires people to pay money or provide account information to get a refund.
Additionally, between January 18 and January 20, the FTC will send additional emails to LendingClub customers who took out loans before January 6, 2017 and repaid the loan. The email will provide instructions on how to request a refund. LendingClub customers who believe they are eligible for a refund but do not receive an email by January 20 should contact the Refund Administrator at 833-630-1417. The deadline for additional consumers to file claims is February 16, 2022.
FTCs interactive dashboards for reimbursement data provide a state-by-state breakdown of FTC refunds. In 2020, FTC actions resulted in more than $483 million in refunds to consumers across the country, but the U.S. Supreme Court ruled earlier this year that the FTC has no power, in under section 13(b), to seek monetary relief in federal court in the future. the The Commission urged Congress to restore the FTC’s ability to recover money for consumers.