Is LendingClub Legit? FTC Case, Fees and Happen Bank (2026)

LendingClub is one of those names that's been around long enough to have a few chapters: peer-to-peer pioneer, scandal, bank, and now a brand-new name. If you've been offered a loan or seen it in a comparison table, here's what the record shows about the company and what to watch for. As always, this is information, not financial advice.

Who LendingClub is

According to Wikipedia, LendingClub was founded in 2006 and is based in San Francisco. It made its name as a peer-to-peer lender, where individual investors funded other people's personal loans, and it was the first peer-to-peer lender to register its offerings as securities with the SEC.

It stopped working as a peer-to-peer lender in 2020, after agreeing to buy Radius Bank, and folded Radius into the LendingClub brand in 2021. That move turned it from a lending platform into a bank. Wikipedia says LendingClub is a member of the FDIC and an Equal Housing Lender.

LendingClub is now Happen Bank

If you're searching for LendingClub and landing on a different name, that's why. Wikipedia says LendingClub announced a rebrand in 2026 and has since rebranded to Happen Bank, which trades on the NYSE under the ticker HAPN.

A rebrand can confuse people and scammers know it. Make sure any loan offer, email or app you use links back to the bank's official website, and be careful with lookalike sites that use either name.

The FTC hidden-fees case against LendingClub

This is the most important part of LendingClub's history for borrowers. The FTC sued it in 2018, and in 2021 LendingClub agreed to pay 18 million US dollars to settle charges that it misled consumers about hidden fees and loan approvals, according to the FTC's own press release.

The FTC alleged that people were promised loans with no hidden fees, only to find up-front fees deducted from the money they received. The settlement requires LendingClub to clearly disclose any up-front or origination fee and the total amount borrowers will receive. In 2022 the FTC said it was returning more than 9.7 million US dollars to consumers harmed by those fees.

What I checked	What the record shows
How old is the company?	Founded in 2006, based in San Francisco
Is it a bank?	Yes, after the Radius Bank deal; Wikipedia lists it as an FDIC member
What's it called now?	Happen Bank, ticker HAPN
Any regulator action?	18 million US dollar FTC settlement over hidden fees
Leadership issues?	Its CEO resigned in 2016 after loan-date irregularities

What happened at LendingClub in 2016

Wikipedia says the board lost confidence in chief executive Renaud Laplanche after loan-date irregularities came to light, and he resigned in 2016. It's an old story now, but it's part of why the company spent years rebuilding trust and why I'd still read its loan paperwork closely.

What to check before you borrow from LendingClub

A legit lender can still give you a loan that's wrong for you. Before you accept, look at:

• The origination fee, and how much of the loan you'll receive after it's taken off.
• The APR, which includes fees, rather than the interest rate alone.
• The total you'll repay over the full term.
• What happens if you pay early or miss a payment.
• Whether a cheaper option, such as a credit union loan, would do the same job.

Those are the exact details the FTC case was about, so they're worth getting in writing. My guide to working out whether a loan is a good deal goes through the same checks with examples. If you run a business and a bank has turned you down, my piece on funding growth when the bank says no covers other routes.

How LendingClub's loans fit into the bigger picture

Personal loans from a bank like LendingClub usually sit between a credit card and a short-term payday loan: a fixed amount, a fixed term and fixed monthly payments. That predictability is the main appeal, especially if you're paying off higher-interest debt and want a clear end date.

The trade-off is that the fee comes off the top on many personal loans, so you can borrow one amount and receive less. Ask for the amount you'll receive in your account in writing and work your budget around that figure, not the headline loan size. If you're comparing banks for everyday business money, my round-up of banking tools for entrepreneurs covers the other side of the relationship.

LendingClub scams to watch for

• A real lender won't ask you to pay a fee by gift card or wire transfer before releasing a loan.
• Be wary of calls or texts promising approval in LendingClub's or Happen Bank's name.
• Never share your online banking password or one-time codes with someone who contacts you.
• Type the bank's web address yourself rather than tapping links in messages.

If you think you've been targeted, report it to the FTC, and contact the bank through its official channels.

My verdict on LendingClub

All told, LendingClub is a real, regulated bank with a long history, and it now goes by Happen Bank. It also has an FTC settlement over hidden fees on its record, so the sensible approach is to trust the company but check the numbers. Compare the APR and the amount you'll receive with at least one other lender, and check the terms for your situation before you sign.

Frequently asked questions

Is LendingClub a real bank?

Yes. After buying Radius Bank it became a bank, and Wikipedia lists LendingClub as a member of the FDIC and an Equal Housing Lender.

Is LendingClub now called Happen Bank?

Yes. Wikipedia says LendingClub rebranded to Happen Bank in 2026, trading on the NYSE under the ticker HAPN.

Did the FTC fine LendingClub?

LendingClub agreed to pay 18 million US dollars in 2021 to settle FTC charges that it misled consumers about hidden fees and loan approvals.

Is LendingClub still peer-to-peer?

No. Wikipedia says it ceased operating as a peer-to-peer lender in 2020.

What should I check on a LendingClub loan?

Look at the origination fee, the amount you'll receive after it, the APR, the total repaid and the early repayment rules.