LendingClub calls charges in FTC complaint 'legally and factually unwarranted'
Following an inquiry that began in May 2016, the U.S. Federal Trade Commission brought an action against LendingClub earlier today in the Northern District of California alleging that certain LendingClub practices do not, or in the past did not, comply with the requirements of the FTC and Gramm-Leach-Bliley Acts. The company stated in response: "LendingClub is committed to delivering a superior customer experience, and appreciates and supports the important role the FTC plays in encouraging appropriate standards and best practices. However, LendingClub believes that the allegations in the FTC's complaint are legally and factually unwarranted. The company is disappointed that it was not possible to resolve this matter constructively with the agency's current leadership and intends to oppose the claims and work towards an early resolution of the matter in Federal Court. Additional information about the complaint and LendingClub's response are on its blog. LendingClub has helped more than two million borrowers improve their financial lives since its foundation more than a decade ago. The company makes credit more affordable and accessible by facilitating fixed-rate personal loans that offer significantly lower interest rates and fees than are available through traditional sources of unsecured credit."