FTC returns $10 million to LendingClub customers charged undisclosed fees

Nearly 16,000 LendingClub customers who were charged undisclosed fees will receive refunds totaling about $10 million from the Federal Trade Commission.

The refunds will be issued through PayPal and the FTC said customers who qualify for refunds include both those who complained about the businesses practices to the FTC and those who applied to get their money back. The deadline to accept the payments is Feb. 16.

The FTC also emailed instructions this week on how to get a refund to additional LendingClub customers who took out loans before Jan. 6, 2017 and repaid the loans. The deadline to apply is also Feb. 16.

The FTC said in a news release that it sued the company in 2018 for falsely promising loans with “no hidden fees,” but then deducted hundreds or thousands of dollars in hidden upfront fees from the loans.

LendingClub also misled customers by telling them they were approved for loans when they weren’t, and withdrew money from bank accounts without permission, the FTC said.

Rust Consulting, the refund administrator, can be reached for questions at 833-630-1417.

In an effort to ward off scammers, the FTC reminded people it won’t ask for people to pay money or give their account information to issue a refund.

Jessica Kronzer

Jessica Kronzer graduated from James Madison University in May 2021 after studying media and politics. She enjoys covering politics, advocacy and compelling human-interest stories.

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