Patrick Murphy, WalletHub Analyst
@stpatrick1982
Yes, you can get a LendingClub debt settlement. Like all lenders, LendingClub would prefer to have people pay what they owe in full. But there are a few sources and signs that make it clear LendingClub does settle debts sometimes.
The first is that LendingClub’s list of account statuses on their website includes one for the account being settled. Their FAQ also says that if an account is settled, LendingClub will report that to the credit bureaus. If that’s not enough evidence, there are plenty of anecdotal accounts from third-party sources that say LendingClub will settle.
You most likely won’t be able to settle with LendingClub if you’re not already several months behind on your payments though. Settlement is an option that lenders typically agree to only when they realize their alternatives are not getting any money at all or taking you to court.
To settle your debt with LendingClub, first call LendingClub customer service at 1 (888) 596-3157. When connected with a representative, tell them you’re interested in debt settlement. Then, present a suggestion for a lump sum of what you are reasonably able to pay. This should be at least 30% of what you owe. Finally, listen to what the representative tells you for the next steps in the LendingClub debt settlement process.
Since LendingClub is a digital marketplace bank, they do not directly finance loans. They just facilitate the loans while various investors fund them. LendingClub will help you and the investors who funded your loan communicate to work out a settlement deal. According to the debt relief company CuraDebt, LendingClub sends out letters offering a final settlement deal with authorization from the investors who financed your loan.
You’re not obligated to accept any LendingClub debt settlement offer you don’t want. But keep in mind that if you continue to not pay your debt, there is a real chance you could be taken to court over it.
People also ask
Can you refinance a LendingClub personal loan?
Yes, you can refinance a LendingClub personal loan using either a new personal loan or a balance transfer credit card from a different lender. By paying off your remaining LendingClub balance with a new, lower-interest loan or credit card, you will shift what you owe to the new lender and save money on finance charges.
How to Refinance a Loan from LendingClub With a New Loan
- Check your credit score. Checking your credit helps you...
Does LendingClub allow a second loan?
Yes, LendingClub does allow a second loan, but no more than that until one is paid off. LendingClub’s website says that borrowers may only have up to two active LendingClub personal loans at once. Businesses that apply for LendingClub’s business loans also can get a second loan (but not more than two). And an individual or guarantor for a loan cannot have more than three LendingClub products open in total. For example, a person could...
read full answer by Adam McCann, Financial WriterWhat is debt settlement?
Debt settlement is the process of negotiating a lower repayment amount for an unsecured debt (typically credit card debt). Debt settlement ends with the party who owes the money making a lump-sum payment to the creditor for the reduced amount, satisfying the person’s repayment obligation.
A debt settlement agreement can be reached by the individual debt holder or through the services of a debt settlement company. A debt settlement company will provide a recommendation for a new monthly payment,...
read full answer by Mary Grace McCormick, Credit WriterDid we answer your question?
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