Consumer complaint received 2021-07-20
Company: Lending Club Corp
State: MD
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Struggling to pay your loan

Complaint:
In XX/XX/XXXX, I reached out to LendingClub to make arrangements for hardship accommodations regarding the repayment of my personal loan account. At the time, I was current on my loan payments, but I was anticipating financial difficulties, due to the COVID-19 pandemic, and related economic impact. At the time of the arrangement, all previous loan payments were processed by scheduled ACH withdrawals from my checking account, which had executed without issue of any kind. The arrangement reached was to pay modified ( lower ) payments for two consecutive months, with a condition that the payments must be made on-time, or the agreement would be cancelled.

After reaching the agreement, the next payment due was scheduled for XX/XX/XXXX, and it was scheduled to be withdrawn by ACH, as all previous payment had processed. However, that payment was not processed by LendingClub on-time by ACH. Having given approval for ACH withdrawal from my account, I did not initiate a manual payment, for fear that it would trigger a double payment in LendingClub executed an ACH transaction following my manual payment. This resulted in LendingClub cancelling the hardship agreement. That began a dispute about the pending amount due for the next payment, which has never been resolved. LendingClub began attempting to collect essentially two months of regular loan payments shortly after the missed XX/XX/XXXX payment, instead of accepting the lowered payment amount, as agreed ; stating that I was no longer eligible for the hardship payment arrangement because I was late making the scheduled XX/XX/XXXX payment. I feel this failed ACH transaction was an unethical and disingenuous tactic conducted by LendingClub to avoid honoring the hardship arrangement reached earlier ; effectively reneging on their hardship payment plan agreement for my loan. 

In following conversations with LendingClub, I repeatedly asked for justifications and explanations regarding the failed ACH payment that cancelled my hardship plan, but nothing they provided as justification was honest or trustworthy about the failed ACH payment. For example, their explanation was that an ( unidentified ) account manager inadvertently cancelled the schedule XX/XX/XXXX ACH transaction (? ). What is also notable, is that despite my willingness to avail myself to their collection representatives in following calls, they were clearly unwilling to accept accountability for the missed ACH withdrawal and work to remedy the situation in any way that didnt require me to make 2 full monthly payments. In my attempts to reconcile the amount outstanding on my loan, I requested the account statements for the loan. I was told that the only account records that were available was the payment history dating back to the beginning of the loan. I insisted that an account statement should be provided upon my request, to ensure that I could track all the charges being posted to the reported outstanding balance but was again refused any copies of account statements. This account balance and the amount owed is clearly in dispute by me, so reporting this matter to credit bureaus is a violation of FCRA This tactic represents LendingClubs refusal to extend accommodations that were provided under the CARES Act for Covid-19 and the violation of FCRA rules on reporting unvalidated account information on my credit profiles of the 3 major CRAs. This is having a significant impact on my ability to regain employment, or secure other financial resources. This is despite my efforts to work with the lender to reach amicable and allowable hardship repayment terms. This is incredibly stressful and toxic, and I am investing valuable time and resources addressing, what I feel to be, disingenuous tactics by this lender. A copy of the hardship agreement is attached for record. 

Your attention to this matter is appreciated.

Company response to consumer: Closed with explanation