LendingClub Corp (NYSE:LC) (2024)

FAQs

Is LC a good buy? ›

LendingClub (LC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

Lendingclub Corp. has a consensus rating of Strong Buy which is based on 8 buy ratings, 1 hold ratings and 0 sell ratings. The average price target for Lendingclub Corp. is $13.86.

How LendingClub is regulated. All loans are made by LendingClub Bank, N.A., which operates under federal banking law. LendingClub Bank is FDIC-insured and is subject to consumer lending regulations, including the Truth in Lending Act, the Equal Credit Opportunity Act, and the Fair Credit Reporting Act.

About LendingClub

LendingClub Corporation (NYSE: LC) is the parent company of LendingClub Bank, National Association, Member FDIC.

Business for the upstarts was good when interest rates were low and they could access capital cheaply. But once the Fed started raising rates in early 2022, revenue growth slowed—in the case of LendingClub, revenue fell—and their stocks crashed.

Before Applying for a Letter of Credit

Letters of Credit are one of the most secure payment instruments available but can be labor-intensive and relatively expensive due to bank fees.

In an email to investors, LendingClub said: “Unfortunately, under a prospective banking framework, it is not economically practical for LendingClub to continue to offer Notes. “So, we had to make the difficult decision to retire the Notes platform effective December 31, 2020.”

The LendingClub scandal refers to when LendingClub was sued by the Federal Trade Commission in 2018 for issues related to falsely promising loans with "no hidden fees," telling consumers they had been approved for a loan when that was not true, and making unauthorized withdrawals.

We have not declared or paid cash dividends on our common stock.

As an investor with LendingClub, some of the risks include borrowers not repaying their loans, the possibility that you'll miss out on higher interest rates and better investment opportunities elsewhere, and the fact that your investment is not FDIC insured.

Is LendingClub predatory? ›

The FTC sued LendingClub in April 2018, charging that the company falsely promised loan applicants that they would receive a specific loan amount with “no hidden fees,” when in reality the company deducted hundreds or even thousands of dollars in hidden up-front fees from the loans.

LendingClub is a legitimate online lender because it is accredited by the Better Business Bureau, which gives it a rating of A+. Plus, LendingClub has a 4/5 rating from WalletHub's editors because its personal loans can be a good option for people with bad-to-fair credit.

LendingClub Bank is regulated by the OCC and held to the same high standards as traditional banks and credit unions. We're a best-in-class, established counterparty.

Here's the Basic Math. Let's say you build a portfolio of loans paying you an average of 14% interest per year. Even borrowers with great credit can default, and this portfolio may see charge offs of about 8% per year on average. Lending Club charges a 1% fee to process the payments the borrowers make on their loans.

Our analysis. In April 2018, the FTC sued LendingClub for violating several laws and using deceptive patterns to deceive loan applicants.