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For consumers:
o Significant cost savings: Over 70% of borrowers on our platform report using
their loan to pay off an existing loan or credit card balance and report that the
interest rate on their Lending Club loan was an average of 7 percentage points
o
lower than they were paying on their outstanding debt or credit cards.1
Responsible credit: Customers who use Lending Club to refinance their credit
card balance are replacing revolving, non-amortizing, variable rate debt with a
their loan through Lending Club, with an average score increase of 21 points.2
Predictable payments: Our platforms personal loan customers benefit from a
fixed interest rate and fixed monthly payments that help them better budget their
monthly payments and plan ahead. This product feature also protects them
against the risk of rising interest rates.
process, faster credit decision, and faster funding than most traditional banks.
Affordability: The same low operating cost model that powers our consumer
lending marketplace also enables a lower cost of funding for small businesses.
Small business owners looking for small loans often resort to merchant cash
advances that have implied annual interest rates of as much as 100%. Lending
Clubs platform can help small businesses access capital at longer terms and
larger amounts with lower rates than typical credit cards or alternative business
loans or cash advances.
2 Average credit score change of all borrowers who took out a loan via Lending Club
between January 1, 2013 and January 31, 2015 with a stated loan purpose of debt
consolidation or pay off credit cards.
3 FDIC March 31, 2015 Call Report Data, C&I Loans and Nonfarm Nonresidential
loans
Responsible products: Our platforms use of 1-5 year terms and no prepayment
penalties keeps borrowers from over-levering or getting into cycles of
Regulatory Framework
Our borrowers benefit from the same regulatory protection as any bank customer as all loans
issued through our platform are issued by federally regulated banks. Working in partnership with
issuing banks has tremendous value to Lending Club and borrowers as it holds us to the highest
compliance and regulatory standard. As a result, borrowers benefit from all consumer protection
regulations including equal access to credit, fair lending, truth in lending disclosure
requirements, fair credit reporting, and fair debt collection. Our compliance with these rules and
regulations is monitored by daily oversight and review as well as quarterly and annual audits by
Access to asset classes that individual investors did not have access to before and
inception.
Full control over investment decisions: investors can build their own portfolio of
standard program loans or Notes based on their investment objectives and risk
appetite. Investors can use 32 different filters to build their portfolio (including FICO
score, debt-to-income ratio, job tenure, home ownership, etc.) and review credit loss
forecasts for the specific portfolio they selected before making their investment
decision;
Maximum transparency: investors can review statistics on credit performance by
grade and by credit attribute for every single loan that was made publicly available to
invest in since inception in 2007, as well as summary statistics by vintage of
origination.
Our investment programs available to investors are regulated by the SEC under the Securities
Act of 1933 and the Exchange Act of 1934 and the rules and regulations thereunder.
Terminology
4 For Retail investors with at least 100 Notes and 100 different borrowers and no
Note accounting for more than 2.5% of the portfolio assuming 24 to 30 months of
average age of portfolio as of September 15, 2015.