Business Consumer Alliance has been informed that LendingClub’s name or variations of their name have been used in circulation ongoing loan scams. In some instances, the fraudsters ask for advance fees to be paid, typically by pre-paid money cards such as Green Dot or Vanilla cards, gift cards like iTunes cards, Western Union or similar payment methods for loans that do not exist. In addition, some consumers have alleged that the scammers deposit fraudulent checks into their accounts and fear their identity has been stolen.
BCA has a report on the scam which can be accessed at Lending Club Scam.
Scammers entice victims to pay upfront fees for non-existent loans, which are known as an Advanced Fee Scam.
According to LendingClub it appears that after a victim has applied for a loan online through an unaffiliated website, the victim's loan request information is somehow obtained by the fraudsters. The fraudster then contacts the victim using the LendingClub name or a variation of LendingClub. They promise the victim that they can obtain a loan through LendingClub by paying a fee such as an application or insurance fee. In some instances, the fraudsters return to the same victim multiple times requesting additional funds in exchange for securing a loan. Funds are usually transferred to the schemers through the use of wire transfer, pre-paid or gift cards through companies with whom LendingClub has no relationship.
LendingClub states they never ask for advance payment for any type of insurance, application fee, or fee to obtain a loan. All personal loans through LendingClub are made without any application fee and are originated by WebBank, member FDIC. Information regarding the relationship between LendingClub and WebBank may be found on the company's website at lendingclub.com. If you are not sure that the solicitor is with LendingClub, contact LendingClub directly at their phone number or website.
If you are asked to pay an advance fee for a loan or suspect that you have been contacted by a loan scam, report the information to BCA. You can also file a complaint with the Internet Crime Complaint Center , and your state's Attorney General. LendingClub recommends adding a fraud alert to your Credit Bureau report. LendingClub Corp states they are working with the FBI to find the scammers (FBI Complaint Id: I1309251131004212, FTC Complaint Id: 48697737).