Lending Club tanks after getting slammed with charges for allegedly misleading customers

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Lending Club tanks after getting slammed with charges for allegedly misleading customers

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  • Lending Club, the technology lender, is taking it on the chin Wednesday after the Federal Trade Commission charged the company with misleading customers.
  • Shares were down 8.2% by 12:56 p.m. ET, according to Markets Insider data.
  • The FTC alleges the company falsely told "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."
  • Lending Club, which went public in 2014, has seen more than 80% of its market value wiped away since.
  • The company saw an exodus of investors and a fall in revenue after a fraud scandal and the resignation of its chief executive, Renaud Laplanche, in May 2016.

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