A class-action lawsuit was filed against LendingClub Corp. in July, claiming the company engaged in fraud, unjust enrichment, breach of contract and violations of the federal Truth-in-Lending Act and the New York General Business Law.
Among other accusations, the lawsuit, which was filed in federal court in New York, alleges that the company made misleading or inadequate statements or omissions related to the total cost and origination fee associated with loans available through its platform.
The company said the matter is in its early stages and that there can be no assurance as to the timing and outcome of the lawsuit.
In 2018, similar lawsuits were filed against LendingClub alleging that it misled consumers that the loans it offered had no hidden fees.
