LendingClub’s recent changes to state eligibility

On 09/24/2019 LendingClub made changes to their state eligibility for primary market investing.  New York, Florida, Texas, and Arizona were impacted by these changes.  LendingClub has not provided details on why this change was made or how long they expect the restrictions to last.  Here is a link to LendingClub’s State of Residence map.

LendingClub statement to impacted investors:

“We wanted to let you know that new LendingClub Notes are temporarily unavailable in your state. We’re working diligently to address this matter and apologize for the inconvenience.

This won’t disrupt the servicing of your existing Notes, but it does mean that you won’t be able to purchase new Notes for the time being or access the LendingClub mobile app as its primary purpose is to purchase new LendingClub Notes. Consequently, you may notice cash accumulating in your account from principal and interest payments.

During this time, you may still participate in the secondary market.”

We will keep you updated as soon as we obtain new information on this matter.

To prevent future billing you can downgrade your account at any time. Simply go to Settings > Management Fees located on the left sidebar menu, click “Downgrade to analytics only account” button in the bottom of the page, then confirm. There are no exit fees, and you will only be charged the management fees that haven’t been invoiced yet.

Alex Neporozhniy