Comparing LendingClub to a payday loan is dishonest. A Pay day loan company charges interest that amounts to an APR of 100%+ [0]. LendingClub's rates range fr

Comparing LendingClub to a payday loan is dishonest. A Pay day loan company charges interest that amounts to an APR of 100%+ [0]. LendingClub's rates range from 5% - 30% [1] and the overwhelming majority of the loans they issue are on the lower end of that scale. Credit cards charge interest rates of 12% - 30% for comparison. Here is a better article about the issue that caused the resignation of the CEO. http://www.bloomberg.com/news/articles/2016-05-10/jefferies-said-to-have-pressed-lendingclub-to-improve-disclosure http://www.bloomberg.com/news/articles/2016-05-10/jefferies-... The specific information that was changed on the loans in question was the application date. It had nothing to do with credit quality, or rates to consumers. The reason they changed the dates was because the bank they were selling them to wanted different wording of the legal language in the loan application document and they asked that the language be changed. LendingClub employees changed the application date on some loans to make it appear as though the customers had applied for the loan after that legal language change happened when in fact they had agreed to only the old terms. It's not honest for sure and shouldn't have been done but at the same time it was caught and corrected and isn't the end of the world. A lot of the negativity narrative is coming from hedge funds who have piled into short positions in LC stock. [0] http://www.consumerfinance.gov/askcfpb/1567/what-payday-loan.html http://www.consumerfinance.gov/askcfpb/1567/what-payday-loan... [1] https://www.lendingclub.com/public/rates-and-fees.action https://www.lendingclub.com/public/rates-and-fees.action