LendingClub Sued by Minority-Owned Business For Alleged 'Predatory and Deceptive Practices that Violate M.G.L. c.93A'

LOS ANGELES, July 28, 2021 /PRNewswire/ -- LendingClub, a peer-to-peer lending company that claims to champion diversity, is at the center of a lawsuit where their purportedly discriminatory conduct and lack of customer care are alleged to have substantially hurt a nonprofit law practice, Our Legacy Legal Services Corp (OLL).

The facts as set forth in the complaint are as follows: LendingClub acquired Radius Bank in 2020, Radius Bank held the account of OLL. In January 2021, after LendingClub mishandled a wire transfer, the bank proceeded to take money from OLL's account, and after OLL made a formal demand for the return of the money under Massachusetts Consumer protection laws, LendingClub froze and restricted access to the account, effectively cutting OLL's access to all operating funds. Amidst the devastating pandemic, while tens of thousands of professional service corporations shut their doors and the U.S. shut its borders; OLL continued to serve 17 minority families, artists, and businesses at their doorstep in Dominican Republic, Brazil, Jamaica, Mexico and the marginalized cities of California. OLL's legal services provided hope in turmoil for many businesses and families. Due to LendingClub's direct actions, OLL was disabled from continuing their work. In addition OLL had to lay-off staff and were not able to continue to give grants to families in need due to the restricted access. As OLL was not at fault, they inquired about why they could not access their funds, to which the bank employees were instructed to disconnect the call upon identifying any representative of OLL. For nearly half a year while keeping OLL's entire account funds frozen, LendingClub did not provide any correspondence formal or informal regarding the status of OLL's account and the funds therein. The lack of response prompted OLL to file suit against LendingClub Corporation, d/b/a Radius Bank.

LendingClub missed the deadline to file an answer. OLL's latest motion states that in lieu of seeking to resolve the complaint with dignity and equity or timely answering the complaint, LendingClub used proprietary information from OLL's bank statement, to which it would not otherwise have access, to allegedly intimidate, malign, and defame the non-profit organization and its employees, threatening suit against OLL's employees and attempting to discourage OLL from continuing its pursuit of legal recourse.

"I am extremely disheartened by the treatment we have received from LendingClub. There has been no transparency, accountability, or apology for their lack of professionalism, customer care, and poor business practices. Instead, they have used bullying tactics, trying to teach us a lesson for daring to hold the 'big boys' accountable; freezing our account without explanation and then doubling down with a retaliatory third-party complaint" said Malika Ewart, principal attorney, Our Legacy Legal Services Corp. " "Their actions contradict their claim of "striving to treat people with respect, fairness, and heart...," they have resorted to hurting the very people they purport to help. Our non-profit legal aid was forced to cease all of our public service programs; this ordeal has impacted not only our firm but those we represent.  LendingClub using outrageous intimidation tactics to depress our pursuit of justice signifies that it does not care about its customers, nor does it seek to live up to the integrity it claims to uphold."

OLL is seeking damages for the return of the misappropriated funds, unjust treatment and disruption of business in their ongoing legal battle with the bank.

SOURCE Our Legacy Legal Services Corp