WASHINGTON–The Federal Trade Commission said it is returning more than $10 million to consumers who were charged undisclosed fees by online lender LendingClub.
The FTC said it is distributing refunds directly to more than 15,000 LendingClub customers and encouraging additional LendingClub customers to apply for refunds.
The FTC sued LendingClub in April 2018, charging that the company falsely promised loan applicants 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 up-front fees from the loans. The FTC also alleged that LendingClub told consumers they were approved for loans when they were not and took money from consumers’ bank accounts without authorization.
According to the FTC, it is sending refunds via PayPal to 15,748 LendingClub customers who complained to the company or the FTC about the hidden fees. Recipients have until Feb. 16, 2022 to accept the payments.
The FTC said it is also emailing additional LendingClub customers who took out loans before Jan. 6, 2017 and repaid the loan. The email will provide instructions on how to request a refund.
More Than $483 Million in Refunds
The FTC noted its interactive dashboards for refund data provide a state-by-state breakdown of FTC refunds. In 2020, FTC actions led to more than $483 million in refunds to consumers across the country, but the United States Supreme Court ruled earlier this year that the FTC lacks authority under Section 13(b) to seek monetary relief in federal court going forward.
The Commission has urged Congress to restore the FTC’s ability to get money back for consumers.