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Last updated - January 27, 2026
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LendingClub, founded in 2006 as pioneer in peer-to-peer lending, grew rapidly and went public in 2014 with the largest tech IPO of that year. In 2016, the company faced major crisis when founder, CEO Renaud Laplanche resigned after an internal review revealed that employees had knowingly sold $22 million in loans that did not meet an investor’s criteria.
Founder
High Risk
Based on the available data, we advise consumers to avoid this Company altogether.
This advisory is based on an aggregate risk score derived from OSINT, Adverse Media, Reviews, and Risk Factors identified in our research.
You are likely to be at great risk by engaging in any sort of consumer-related activity with this entity.
Medium Risk
Based on the available data, we advise employees to be mindful when considering or continuing work with this Company.
This advisory stems from a medium-risk score compiled from OSINT, Adverse Media, Reviews, and Risk Factors uncovered in our analysis.
Employment with this entity may involve moderate risks.
Based on the available data, we urge investors and bankers to avoid financial involvement with this Company.
This advisory is informed by an aggregate risk score based on OSINT, Adverse Media, Reviews, and Risk Factors identified through our investigation.
Engaging in investment or lending activities with this entity poses a substantial risk to your financial interests.
Safe to Onboard
Enhanced Due Diligence required
Do Not Onboard
Monitor adverse media every 6 months
File SAR (Suspicious Activity Report) is warranted
Escalation to compliance committee
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LendingClub’s board forced CEO Renaud Laplanche to resign after an internal investigation revealed employees knowingly sold $22 million in loans not meeting investor criteria, with Laplanche aware but failing to disclose fully.
LendingClub’s asset management unit and former executives were charged by the SEC in 2018 for misleading investors and breaching fiduciary duties, resulting in a $4 million penalty for the company. The charges stemmed from improperly altering loan applications.
The FTC charged LendingClub in 2018 with deceiving consumers by promising “no hidden fees” while charging upfront origination fees, leading to an $18 million settlement in 2021. Allegations included falsely assuring loan approvals & unauthorized bank withdrawals.
In December 2025, multiple LendingClub customers reported unauthorized transactions draining their accounts, with complaints of inadequate fraud alerts and long customer service wait times. Social media posts highlighted a potential widespread breach.
LendingClub settled a $125 million class action lawsuit in 2018 over securities violations tied to the 2016 loan irregularities and misrepresentations during its IPO. Investors alleged fraud and misleading statements about the company’s viability. Additional lawsuits accused the company of breaching guarantees and diverting funds.
LendingClub’s 2016 scandal involved falsifying loan dates and selling non-compliant loans, leading to CEO resignation and regulatory probes. Media coverage portrayed it as a fintech setback, with ongoing FTC and SEC actions reinforcing perceptions of unethical practices.
Regulatory and Compliance Screening
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What you see here scratches the surface
We offer reward for actionable intel
This CNBC article details LendingClub's board ousting CEO Renaud Laplanche due to lack of cooperation in an internal probe revealing improper sales
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This article details the SEC's fraud charges against LendingClub founder Renaud Laplanche for improperly using fund assets to benefit the company.
This SEC press release details fraud charges against LendingClub Asset Management LLC & former executives Renaud Laplanche & Carrie Dolan
Other Red-Flags and Adverse News
Based on user engagement on this review profile, ProConsumer will decide to publish its Risk Audit report for public if a threshold engagement, traffic and user input is achieved.
Known Assets: [Real estate, investments, companies]
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Liabilities: [Bankruptcies, defaults, debts]
Wealth Sources: [Legitimate / Unclear / High-risk]
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Business Model Assessment
All comments are user-generated content and may not be verified. They represent the personal opinions of the public and should not be relied upon. These comments do not influence or determine our overall rating.
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3
Highly experienced
Well-recognized name
Faced allegations of scamming others
Allegedly sold fake silver
Sued multiple times
Unregulated industry
Alarming number of complaints online
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For investors, this episode is a major red flag. LendingClub’s business model relies on trust and transparency, yet employees knowingly bypassed rules for profit. That kind of behavior undermines the very foundation of peer-to-peer lending.
1/5
3/5
LendingClub may have been a pioneer in peer-to-peer lending, but the 2016 scandal shows serious governance and ethical issues. Selling $22 million in loans that didn’t meet investor criteria is a huge breach of trust, and it ultimately forced the founder and CEO, Renaud Laplanche, to resign.
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