FTC SETTLES “HIDDEN” UPFRONT FEE SUIT

In July 2021, the Federal Trade Commission (“FTC”) settled its lawsuit against an online marketplace loan provider. The FTC filed their initial complaint in 2018, alleging that the company engaged in unfair and deceptive acts or practices and violated the Gramm-Leach-Bliley Act (“GLBA”) in connection with its advertising, application process and automatic payment practices. FTC v. LendingClub Corporation, No. 18-02454 (N.D. filed Cal., Apr. 25, 2018); see our ALERT of May 21, 2018. The FTC complaint alleged that the company falsely promised consumers they would receive loans with “no hidden fees”, told applicants their loans were “on the way” when they knew those applicants would not receive a loan and initiated unauthorized withdrawals from consumers’ bank accounts. Read More