LendingClub is headquartered in Lehi and is the 11th largest bank in the state of Utah. It is also the 266th largest bank in the nation. It was established in 1987 and as of March of 2022, it had grown to 1,504 employees at 2 locations. LendingClub has an A+ health rating.
the whole linking with Chase via Plaid fell flat on its face, so I went the traditonal route, with micro deposits, verify amounts etc. So, after a few days, up and running. No problems. My account isn't limited on $ amounts for withdraws, so I've factored that in. Their rates are very competitive. No issues so far. for those worried about daily withdraw limits, just initiate the transfer at another bank once the accounts are linked...you can bypass the daily limit. ie. have an account at Chase, or Wells and initiate the LC Bank withdraw from your Chase or Wells account. You can do any amount
I applied for a high-yield savings account. The website seems clear and the application process seems simple. That is because the website information is not complete and the application approval relies on a credit pull. The website’s FAQ says:
“Yes, we do a soft pull of your credit. Soft pulls do not affect your credit score. Please note, if you have placed a credit or security freeze on your credit report you’re application may need to be manually reviewed. If the application needs to be manually reviewed it can take up to 5 business days.”
I have a freeze on all of my credit reports. I made an application, expecting to learn more about the manual review. NONE WAS OFFERED. When I inquired via chat, this is the response I received:
“Your application was declined because of the funding and YOUR CREDIT REPORT BEING FROZEN. You can reapply after you unfreeze your credit, but you must use a different funding source.
I then asked “Which credit agency do you want unfrozen?”
Response from Lending Club, “ I would unfreeze them all to be safe”
This ‘unfreeze them all’ is totally crazy. While I generally avoid institutions that require this additional hassle, when I have done so for a few credit unions, they tell me in advance which credit bureau they are using. This hassle is not worth the 10 bp advantage over my account at National Cooperative Bank (NCB).
A few other observations from the application process (since I am the first to review):
You might have noticed that Lending Club has some sort of objection to my funding source, NCB.
During my initial application attempt, the website offered two methods of linking to my funding source. They recommended using “Plaid”. Some commenters on this site have objected to using Plaid at other institutions since you have to provide your log in credentials. I proceeded anyway. While Plaid recognized NCB during the initial step of the process, they came back with a response that they could not find a checking or savings account of mine at that institution, although I have a MMA there. So I proceeded with the alternative approach of using the NCB account number and routing number. That resulted in my application rejection as describe above.
Apparently Lending Club has some problem with NCB, which they do not explain, merely giving a hard "NO." So much for my intended funding source.
Before attempting the application process, I use their “chat” feature to find out more about online banking transfer limits, if I opened a High Yield Savings (HYS) account. This turned out to be a chat bot, which gave me a link to follow for the answer to my question. I was not comfortable that I was getting an answer that applied to the HYS, so I called. That customer service rep said the link was valid, but the answer was “more nuanced.” That link showed several transfer limits defined by the account balance and time the account was open. The rep said that for HYS, the account starts at the “preferred” level (the third of 5 or 6 levels) which is $10,000 daily. Of course none of this is indicated on website tools, you have call to get the true story.
I had also used the chat bot to ask how many external accounts could be linked to the HYS account using online banking. The bot could not understand my question, but give an option to link up with a live person on chat. That rep told me “There is currently no limit for how many external banks can be linked to an online banking account.”
During the application process, I was limited by the system to initial funding of my account of $250, pretty limiting given a $10,000 daily limit. However, the rep I talked to about limits told me I could request one-time exceptions to that daily limit. He also said there is no other $ limit, like monthly, and there is no limit to the number of transfers, as long as they are within the $ limits.
I signed up for a business account with Radius bank, which was later bought out by Lending Club.
They slowly drained my account with their fees, and by the time I noticed there wasn't much money left.
I closed the account and asked for the balance to be sent to my other checking account. There was some kind of issue with this going through on their end, and it was never done. They then took more fees out after the account had been closed. After multiple phone calls and getting nowhere I asked this to be escalated, I was then told a check had been issued, but never received this confirmation by email. I will never do business with this bank again.
It took me 5 weeks to get a business savings account set up for my trust. I was told I had to create a personal account first, then the trust department would convert. This was not true. Now I have two accounts, one of which I must close. TRANSFERS. I just tried to transfer in $10,000 after the phone rep said that was my daily limit. The website said I cannot transfer in more than $5000 to my business account. I want to transfer in about $150,000, so no way I will do $5000 each day. Also, NO WAY I want to spend weeks taking my money out when I need it. Lending Club offers good rates, but is unusable imo. Everyone you speak with on the phone tells you conflicting information. I wanted to use this site for the high yield, but unfortunately I am closing my accounts. I have spent hours on over 20 phone calls with Lending Club on various issues. Too many problems to detail here. CONCLUSION: TERRIBLE ONLINE BANK
If you want to use this bank for business banking forget it. They can't wire to a foreign country over the web; you have to call them. They consistently make errors while sending wire transfers or simply forget to send it. Customer service is terrible. Never anyone to talk to, you just have to hope and prey the money gets sent. There's no point in using them over a big bank like Chase.
|FDIC Certificate #||32551|
|Return on Assets - YTD||3.14%|
|Return on Equity - YTD||22.45%|
|Annual Interest Income||$99.8MM|
|Assets and Liabilities|
|Assets||Q1 2022vs Q1 2021||$5.17B$3.29B|
|Loans||Q1 2022vs Q1 2021||$3.38B$2.14B|
|Deposits||Q1 2022vs Q1 2021||$4.06B$2.41B|
|Equity Capital||Q1 2022vs Q1 2021||$691.1MM$428.6MM|
|Loan Loss Allowance||Q1 2022vs Q1 2021||$188.0MM$36.1MM|
|Unbacked Noncurrent Loans||Q1 2022vs Q1 2021||$10.0MM$10.4MM|
|Real Estate Owned||Q1 2022vs Q1 2021||$0$0|
Rates for LendingClub are currently being reviewed.
|Branch Office||One Harbor Street, Suite 102||Boston, MA 02210|