Welcome to our LendingClub Review regarding the website currently found at LendingClub.com.
Three days ago, on February 16, 2023, we received the following complaint:
I gave my account number to a man who claimed he was from Lending Club and promised to provide me a loan. However, he was not from Lending Club. He advised me to increase my credit score by depositing money into my bank account, and then sending it back to him.
He also informed me that I would receive a fraud alert from my bank, but I should ignore it and click on the ‘okay’ button. Unfortunately, he took out claims on my account, and my bank refunded the money he took. But that money was the amount I had sent back to him, and my bank claimed that I had authorized the transaction.
In total, I lost $651. I later discovered that he had also made claims against my insurance and other credit cards.
My bank refunded the money they had initially deposited in my account while reviewing the claims. However, after a few days, the claims were denied, and I was left with the $651 loss because I had already spent the money and sent it to him. I attempted to contact the man, but he has since blocked me.
So is LendingClub a legit site or a SCAM?
LendingClub Review
The domain lendingclub.com was registered on May 29, 2002, for 25 years through CSC Corporate Domains, Inc.. It was last updated on January 28, 2017.
The registrant company is Lending Club from 71 Stevenson Street, San Francisco, CA 94105 US.
The listed phone number is +1 (888) 376-6642.
Fax: +1 (415) 632-5611.
Email: domain@lendingclub.com.
LendingClub.com is hosted by Amazon.com, Inc.
Lending Club is a highly popular website, ranking 15,196 in the world and 2,936 in the US, with a rank of the 79 most popular Finance > Banking Credit and Lending websites in the United States. In January 2023, it received almost 3.5 million visits from the United States mainly, but also from Costa Rica, India, Canada, Mexico, and other countries, according to SimilarWeb.
It has a Semrush Authority Score of 58% with backlinks from highly authoritative websites such as bbc.com, cnn.com, forbes.com, and theguardian.com.
They may be the largest P2P lender in the United States, but not all mentions are positive. For example, a 2016 NYTimes article points out that Lending Club has received a criminal subpoena from the US Department of Justice.
This came just after Renaud Laplanche, the company’s founder and CEO, recently Resigned following the discovery of fabricated loan applications and the sale of loans that did not meet certain specifications to an investment bank.
The company was already facing trouble selling its loans due to growing doubts about the long-term viability of the business, and its stock price has plummeted since going public in 2014.
What exactly is Lending Club?
Lending Club is an online lending platform that connects small-business borrowers with individual and institutional lenders.
They also offer car loan refinancing and banking products.
The website claims to have helped over four million members with their financial goals.
Checking the rate with LendingClub does not impact the credit score as they only use a soft credit pull.
They offer 4 main services:
Personal Loans
LendingClub offers personal loans up to $40,000 with a fixed rate and repayment plan.
With fixed terms, fixed interest rates, and a regular monthly payment schedule, LendingClub offers personal loans to help clients consolidate high-interest credit card debt, refinance credit cards, balance transfer loans, debt consolidation loans, and home improvement loans.
LendingClub offers loans with fast approval and no prepayment fees.
A personal loan can be obtained by anyone with U.S. citizenship or residency, who is at least 18 years old, and who has a verifiable bank account.
The company provides multiple options for payments, joint loans, and paying creditors directly.
LendingClub has provided loans of $80 billion to over 4 million members, and its loan application process is quick and simple.
Business Loans
LendingClub provides a range of lending and deposit products for businesses, including small business loans, SBA loans, commercial real estate financing, and equipment financing.
They offer customized solutions to fit the needs of each organization.
They also provide deposit accounts, online banking, and cash management services to help businesses manage their finances.
LendingClub prioritizes customer security and provides excellent customer support. Some loans may be made in partnership with Accion Opportunity Fund Community Development.
LendingClub Bank is a subsidiary of LendingClub Corporation and is a member of the FDIC.
Auto Refinancing
LendingClub offers auto loan refinancing to help you save money on your car loan by securing a lower interest rate.
By refinancing, you can reduce your monthly payments by adjusting the length of your loan term, freeing up cash for other financial needs.
The process is easy, simple, and secure, with no origination fee or prepayment penalties.
You can quickly see the offers you qualify for and complete an easy online application to get approved.
If approved, LendingClub will pay off your previous lender, and you’ll drive off with savings.
To qualify for auto loan refinancing through LendingClub, your vehicle must be for personal use only, 10 years old or newer, and under 120,000 miles. Your existing auto loan must also be open for at least one month, have a balance between $4,000 and $55,000, and have at least 24 months of payments remaining.
By refinancing with LendingClub Bank, members can lower their payment by about $88 per month on average, based on average customer interest savings of $2,759.45 and average monthly payment reduction of $80.28 from January 2019 to December 2019.
Patient Solutions
LendingClub Patient Solutions offers affordable payment plans to patients seeking medical treatment.
Patients can view all pre-qualifying options without impacting their credit score and begin the process by selecting a provider near them.
LendingClub Patient Solutions also offers transparent payment options and attractive Annual Percentage Rates (APRs) for doctors, making it easier for more patients to proceed with their treatment.
The payment plans offered are competitive with monthly payments that fit the patient’s budget, with installment loans and revolving lines of credit available.
The variety of payment plans guides patients to find the monthly payment that fits best in their budget.
Is LendingClub a Scam?
LendingClub is not a scam, however there may have been some misconduct involved in their operations.
For example, in 2018, the FTC filed a lawsuit against Lending Club for deceptively marketing personal loans by promising “no hidden fees” but still charging an up-front fee. The company was also accused of unauthorized withdrawals from customers’ bank accounts and failing to provide required privacy notices.
In August 2022, the FTC distributed $9.7 million in refunds to 61,990 eligible LendingClub borrowers who were charged hidden fees and filed a valid claim before the deadline. The total amount refunded to consumers is more than $17.6 million. The FTC advises borrowers to shop around and get a list of all fees when considering applying for a personal loan.
LendingClub Reviews
Multiple users shared their experiences on CreditKarma:
One user with a credit score 670 obtained a $12,600 loan at a 24.49% interest rate and a 29.19% APR for 36 months to consolidate credit card debt. The user found the loan was a bad deal and eventually paid it off using a credit union’s home equity line of credit.
Another user complained about a $500 origination fee and said they would never take out a personal loan from LendingClub again. Other users reported being pre-approved for a loan only later denied, encountering difficulties with the payment system, and experiencing poor customer service.
On TrustPilot, they are ranked 4.7 based on 4,611 reviews. We focus on the negative, most recent reviews:
Several customers have expressed dissatisfaction with Lending Club Bank’s loan application and disbursement process. One person complained about being declined for a loan after submitting personal information, while another waited over a week for loan funds and had to make numerous phone calls.
Another person complained about the bank’s employees’ lack of knowledge and inability to help. There were also complaints about technical issues with the bank’s online application, auto drafting and refunding, and unresponsiveness to emails. Some customers said they would never do business with the bank again, and one person warned others not to take out loans from the bank, even if they claim to help with financial hardship.
Bottom Line
Lending Club is a legitimate online lending platform that offers personal and business loans, car loan refinancing, and banking products.
Although the company has a high popularity ranking, it has received negative press, including a criminal subpoena from the US Department of Justice and the resignation of the company’s founder and CEO.
Lending Club has provided loans of $80 billion to over 4 million members, and its loan application process is quick and simple.
While Lending Club offers fast approval and no prepayment fees, there have been reports of fraudulent activity under the guise of Lending Club representatives.
It is recommended that customers exercise caution when dealing with unknown individuals claiming to be Lending Club representatives and that they verify the legitimacy of any communication or offer before providing any sensitive personal or financial information.
If you have lost significant money to online scams, do not lose hope. We can help you recover your funds!
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Got loan from Lending Club through Credit Karma for $5500. for dental work. 3 yr no interest. Always paid by check and balance was always correct. Haven’t gotten a statement in awhile so I went online to pay. Interest has been added since loan inception and Now I still owe an extra $112. plus my payoff for last 6 mo. I have no paperwork as I applied online and no previous statements as I discarded when I paid. Lesson learned. Will never have another loan with Lending Club!