Is There A Lending Club Scam? Here Is My Experience With Lending Club

By | August 13, 2014

So is there really a Lending Club scam? That would sure be unfortunate, wouldn’t it? There is a lot on the line financially when you are dealing with loans, and you want to be sure you are not getting the short end of the deal. But before I tell you the details of my experience with lending club, let me say the following: this site is a dead honest review of Lending Club. On the off chance that you want anything else, then this probably isn’t the place to be.

OK here’s my take on Lending Club:

About 6 months ago, I found that I needed to take out a loan to cover my wedding expenditures. It wasn’t expensive, but it wasn’t cheap either (well to me anyway.) Since the circumstances did not allow me to get a loan from the traditional brick-and-mortar operation, I turned to the internet, as I suspect you are doing right now.

I compiled a list of about 15 different loan websites, and I noticed the same disturbing about them. They all had the same generic graphics of nice looking women and often little contact information on the site. You might know these as “payday loans”, and a lot of people get their information misused and received harassing phone calls from Indian scammers with little or no lives.

Of course I needed something legit, and my search led me to Lending Club, which has some resemblance to those crappy sites except for a few key things which gave me peace about doing business with them.

First of all, the contact information is clearly available. That’s pretty key when there is a lot of money in question.

Second, they have a good standing with the BBB and are recognized by Harvard Business Review as one of the 20 “Breakthrough Ideas for 2009″. Many other internet loan companies hide behind a website with WHOIS protection so you can bark up their tree.

Third, the APR figure is fairly close to what you can get with decent credit. I have worked hard all my life and have had almost no trouble in that regard, and I got about 6.8%.

Fourth, Lending Club has been located at Redwood City, CA. since its founding in 2006.

The Lending Club business model is to “bring together investors and creditworthy borrowers — eliminating the cost and complexity of traditional bank lending — to offer borrowers better rates and investors better returns.” My background is in finance, and I find this model quite reasonable.

Remember that loan operations or any business really thrive on respect, and I don’t believe Lending Club is willing to let that go. I understand quite well that the shadier loan websites among us can run off with your money and not even take any heat, but that is not the case with Lending Club – they can’t afford it.

Conclusion:

If you need a medium risk loan for any legitimate reason, then I recommend you try out lending club. These guys can take care of you like they did me.

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