FTC charges LendingClub with collecting hidden fees on loans

The Federal Trade Commission has charged the LendingClub Corporation with falsely promising consumers they would receive a loan with "no hidden fees," when, in actuality, the company deducted hundreds or even thousands of dollars in hidden up-front fees from the loans. "This case demonstrates the importance to consumers of having truthful information from lenders, including online marketplace lenders," said Reilly Dolan, acting director of the FTC's Bureau of Consumer Protection, in a statement. LendingClub shares tanked 8% on the news. In a statement, LendingClub said it was "very disappointed that it was not possible to resolve this matter constructively with the agency's current leadership" and pointed to the company's "longstanding record of consumer satisfaction." (Updates with statement from the company.)