Author Archives: LeClairRyan

LeClairRyan

About: LeClairRyan

As a trusted advisor, LeClairRyan provides business counsel and client representation in corporate law and litigation. In this role, the firm applies its knowledge, insight and skill to help clients achieve their business objectives while managing and minimizing their legal risks, difficulties and expenses. With offices in California, Colorado, Connecticut, Georgia, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, Pennsylvania, Texas, Virginia and Washington, D.C., the firm has approximately 380 attorneys representing a wide variety of clients throughout the nation.

FTC Lawsuit Highlights the Importance of Accuracy in Online Loan Advertising and Application Process

A lawsuit filed on April 25th by the Federal Trade Commission (“FTC”) against LendingClub Corporation (“LendingClub”) shows how promotional language used in attracting online borrowers can get a company in legal trouble if misleading or inaccurate. The FTC’s complaint alleges that LendingClub promised “no hidden fees” in print and online advertising, yet deducted an up-front fee before disbursing loan funds to borrowers. The FTC’s lawsuit also examines in detail the various pop-up bubbles and other features that the online loan platform used in the application process to disclose fees, noting that a consumer was unlikely to learn of the existence of the fees based on how such pop-up bubbles and other features worked. The FTC …

[ CONTINUE READING ]

Posted in Online Lending \ Comments Off on FTC Lawsuit Highlights the Importance of Accuracy in Online Loan Advertising and Application Process