Consumer complaint received 2018-08-22
Company: Lending Club Corp
State: MD
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Problem when making payments

Complaint:
I got a loan from Lending Club in XX/XX/2018 for {$15000.00}. One of the agreements I signed, it stated that Lending Club would be sending me a reminder 10 days before the payment would be automatically deducted from my account. I never received that notification. 

On XX/XX/2018, I received an email stating ______ Your loan payment of {$640.00} due on XX/XX/2018 could not be processed due to insufficient funds in your bank account. 

We will attempt to process your {$640.00} payment again in five business days. Please ensure that you have sufficient funds in your bank account at that time .... 

XXXX This is correct. After checking my account, I was able to see this transaction attempt. Because I had not received the 10 day notice, I had not ensured the funds would be in the account. 

On XX/XX/2018 I received an email stating that my payment was late. It provided a link to schedule a new payment. I wired the funds into my account and asked that it be processed the same day. I also asked for loan payments to be shceduled on XXXX of month. 

That is the very last email I received from Lending Club regarding payments. I received several promotional emails after that. I was pleased that the issue was resolved. 

Since I hadn't received the contractual 10 day notification for the previous payments, I didn't pay any mind. I never received another late notice or anything regarding payments. 

In XX/XX/2018, I received an alert from a credit bureau stating new derogatory information was posted to my credit report. When I consulted my report, it should several late payments from Lending Club! 

I was once more out of the country but I immediately called Lending Club. They stated that after the attempt in XXXX, they tried to take two payments in XXXX ( before the XXXX date ) and that it was returned. They said that after that, they made no further attempts to collect anything. I explained that I had a signed agreement for the payments to be withdrawn from the account, and that if they hadn't notified me of any late payments or notified me of their cancellation of the automated payment contract. 

I immediately paid the outstanding payment over the phone, making the account current, and scheduled the next payments as well. The funds were taken out of the account with no issue. A representative informed me that they had already cancelled the loan and charged it off. 

How can they charge off a loan that was perfectly collectable?? How can they unilaterally cancel a contract without even informing the borrower?? 

Moreover, it has been over a month that they have collected the funds and have failed to update credit bureau records. 

I called Lending Club and asked to speak to a supervisor. I was told none was available. One agent told me that my credit file would be updated by what would be now. It has not. The original balance still shows. Even worse, it shows as a chargeoff. I have no other personal late payments on my credit report ( one business related account which has already been resolved ) so this is really tarnishing my credit report. 

I also think that there is an element of fraud involved. These loans are funded by investors. Lending Club makes money from fees that are withdrawn before the loan amount is deposited in the account. When a loan goes into default, Lending Club loses nothing. It's the investor that loses. After the loan is charged off, as in my case, Lending Club is collecting but the investor is NOT. This is fraud! Also, placing a loan into uncollectable status when you really haven't tried to collect is accounting fraud.

Company response to consumer: Closed with explanation