LendingClub (NYSE: LC) had record full-year loan originations of $10.9 billion in 2018, up 21% year-over-year, with application growth up 35% as well. Meanwhile, net revenue was $694.8 million, also a record high and an increase of 21% year-over-year.
This year, the company sighs some relief with regulatory complaints settled in 2018.
A Federal Trade Commission complaint brought against the company was amended at the end of November 2018. The original complaint, filed in April 2018, alleges that Lending Club promised consumers that they would receive a specific loan amount with “no hidden fees,” when, in reality, the company was deducting hundreds or even thousands of dollars in hidden up-front fees from the loans.
On the company’s earnings call this evening, CEO Scott Sanborn said that there will now be an additional disclosure higher up in the application process.
Lending Club also saw closure to a years-long SEC investigation, concluding in September 2018 with a $4.2 million settlement to be paid by the company’s former CEO and CFO. SEC charges were not recommended against the company.
Sanborn said that he anticipates seeing continued growth, among other areas, in Lending Club’s personal loan business, offering lower rates to higher credit quality customers.