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LendingClub Review: Scam or Legit?

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LendingClub

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LendingClub is one of the most debated companies in recent memory. People either think it’s a scam or they’re legitimate, so what do you know about this lending site? We’ll take an inside look at how things work and whether or not personal loans are right for your situation.

This company has been in business since 2007. They offer personal loans between $2000 and $40,000, and the process of applying for a loan is relatively simple. You can get pre-approved in minutes, and if you’re approved, you can have the money in your bank account within days.

Lending Club is being accused of duping its customers by increasing the interest rates after they’ve agreed to take out a loan. The Federal Trade Commission (FTC) filed this complaint against them on April 25th, 2018 for violations related to bait-and-switch tactics and false advertisement at least according to what was announced during an awards ceremony where one recipient got $1 million dollars as compensation.

The LendingClub personal loans sounds like it could be a great option for those who need quick and easy money, but there are risks involved. The company has been sued by the Federal Trade Commission (FTC) before because they claimed their ads were too good to actually work out as promised.

If you have already taken out a personal loan from them and are experiencing problems, you may want to contact an attorney to discuss your options.

LendingClub Pros and Cons

LendingClub offers low-interest rates and direct mailings to attract new customers. However, there are several pros as well as cons that should be considered before signing up with this company for a personal loan.

First of all, the interest rates are not always as low as they seem. In fact, many borrowers have reported being scammed by the company’s misleading advertising. Secondly, the approval process can be quite lengthy and frustrating, especially if your credit score is not high enough.

The customer service is notoriously bad and many people have rated them negatively. Before taking out a loan with this company, be sure to weigh the pros and cons carefully because there are lots of negative reviews available online about how difficult it has been dealing with these people over payment plans or just general questions around repayment rates for loans taken out in previous years.

LendingClub Lawsuit

On April 25, 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub Corporation, dba LendingClub. The FTC’s complaint alleges that LendingClub engaged in unfair and deceptive practices by charging consumers illegal upfront fees and misrepresenting the benefits of personal loans.

The Federal Trade Commission has filed a complaint against LendingClub, claiming the company failed to disclose important information about its products. The result was that many consumers were misled into believing they were getting good deals on loans for themselves or their family members when in fact those rates turned out not to be so attractive after all, with much higher interest fees added on top!

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If you have taken out a personal loan from LendingClub in the past, it is important to review the FTC’s complaint to see if you are affected. You may be eligible for a refund if the FTC’s allegations are proven to be true.

How to qualify for LendingClub?

To qualify for lendingclub personal loans, you’ll need a good credit score and a steady income. You’ll also need to be a US citizen or permanent resident. If you meet all of these requirements, you should be able to qualify for a loan from LendingClub.

Some of the basic qualifications are:

  • 18 years old or older
  • A US citizen or permanent resident
  • Have a verifiable savings or checking account
  • have a regular income source
  • Minimum credit score 640

If you have all of these things, you should be able to qualify for a Lendingclub loan and your loan funds will be available within 24 to 48 hours . If you don’t meet all the qualifications for a loan approval, you may still be able to qualify if you have a cosigner who does.

How does LendingClub work?

LendingClub is the last place you should go if your goal is to get a low-interest rate. Even though they claim that their loans are guaranteed, many customers have reported scams by this company and others like them in order to make more money off of people who need help borrowing funds for either emergency purposes or larger purchases such as homes, etc…

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Be smart when it comes to your finances and don’t let yourself get scammed. Research the lenders before you choose one, so that they are reputable in their work with honest prices for good quality services.

How much does LendingClub cost?

LendingClub financial institution promises low-interest rates to investors but hikes up the borrowing costs once they’ve been funded. Borrowers can pay an annual percentage rate (APR) of over 30% in addition to origination fees on their loan amount.

The best way to avoid being taken advantage of is to stay away from their loans altogether. There are plenty of other personal loan companies that offer competitive interest rates without all the hidden fees and impossible loan payment terms on your loan amounts.

What is the interest rate on LendingClub?

The personal loan rates on LendingClub loans are 6.95% – 35.89% APR. Loans with terms of 36 or 60 months have an origination fee of 1%, with a loan term of 12, 24, or 48 months have an origination fee of 5%. There is also a $15 late payment fee.

How does LendingClub affect your credit?

LendingClub is a peer-to-peer lending platform that offers personal loans. When you apply for a loan through LendingClub, they will do what’s called a hard pull on your credit. This means that they will check your credit history and score in order to determine whether or not you are eligible for a loan.

If you have any late payments on your monthly payment record, this will also be reported to the credit bureaus and will negatively impact your credit score. Therefore, it’s important to make sure you understand the terms of your loan and make all payments on time in order to avoid any negative consequences.

Just be sure to keep up with your payments so that you don’t damage your credit in the process!

Who Is LendingClub Affiliated With?

Lending Club’s list of affiliates is long and complicated. Some companies are sharks, while others may be legitimate financial services providers that just happen to have an affiliation with Lending Club as well, but there’s no way for you to know which one until after your deal has been completed.

  • QuickQuid
  • Wonga
  • LendUp
  • Upstart Network

Be especially careful if you’re considering using one of these companies for unsecured personal loans – they may be a scam, and you could end up losing your money. Always do your research before agreeing to work with any company.

How to cancel LendingClub?

If you have an outstanding balance on your unsecured personal loans, you can cancel your loan by either making a full payment of the outstanding balance or by contacting LendingClub customer service. If you cancel your loan, you will be responsible for the entire outstanding balance. To make a full payment, log in to your account and click on the “Make a Payment” link. Then enter the amount you wish to pay and select “Payoff.” If you have any questions, please contact their customer service team.

LendingClub BBB Reviews

BBB has an ALERT FOR THIS BUSINESS. BBB reports on known government actions involving business.

Karina J. 03/25/2022

Horrible customer service I was denied the right to speak to a Manager by supervisor *** after she messed up my account and couldn’t explain why my account had accrued interest rate after she promised me something that she said she couldn’t deliver and was sorry my account is jacked up and nobody can explain why

Thomas H 03/14/2022

The staff is very rude and inconsiderate toward senior citizens and someone with limited computer skills.

Aileen S 03/02/2022

Phone customer support is incredibly rude and uninformed. The agent put me on hold without warning. Asked for my social and couldn’t find my information but was able to find it near immediately after I suggested using my email instead. Unprofessional, poorly trained, and business practice is not secure. Please get better agents to discuss account information with. Also, for security’s sake, stop asking for a client’s entire SSN on a recorded call.

Is LendingClub Legit or a Scam? 

Have you ever seen the commercials for LendingClub? They promise to help people with their debt and loans, but is it a legitimate company or a not-so-innocent scheme?!

It is no secret that there are many complaints about LendingClub online. People have claimed they were not charged the advertised rate, promises weren’t kept or followed through on by them at all and in some cases even considered a scam!

Unfortunately, at this point, it seems like LendingClub has so many bad reviews that it may pay to avoid them altogether. If you’re looking for personal loans, I would recommend checking out other options first. And if you’ve already been scammed by LendingClub, be sure to report them.

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Jayden Taylor loves spending time with her three children and husband of 14 years. She enjoys reading, writing, and personal finance education. After overcoming significant debt through consolidation, Jayden is passionate about helping others do the same. When she's not working or spending time with her family, you can find her hiking or camping in the beautiful Colorado Rockies.

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