LendingClub Says Massachusetts Probing Consumer Ads, Disclosures
(Bloomberg) -- LendingClub Corp. said authorities in Massachusetts are investigating its advertisements and disclosures to consumers, adding to scrutiny of how it markets online loans.
The company received a civil investigative demand from the state’s attorney general in June, according to a regulatory filing on Wednesday. The lending platform said it’s cooperating and can’t predict what may come of the investigation, which is in an early stage.
LendingClub, which matches borrowers with investors who want to fund them, already is disputing a complaint from the Federal Trade Commission that it misled consumers with hidden fees and charged borrowers even when they paid off loans. The San Francisco-based company didn’t elaborate on Massachusetts’ concern its filing on Wednesday.
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