Lending Club assesses a Processing Fee for providing the services of underwriting the loan and matching lenders to borrowers. This Processing Fee is determined by the final loan grade of the listing as displayed in the following table:
Loan Grade A: 0.75%
Loan Grade B: 1.00%
Loan Grade C: 1.50%
Loan Grade D: 2.00%
Loan Grade E: 2.00%
Loan Grade F: 2.00%
Loan Grade G: 2.00%
This Processing Fee is included in the Annual Percentage Rate calculation and is subtracted from the loan proceeds prior to disbursement. For example, the final amount credited to the borrower's bank account for a $5,000 loan with a 1.00% Processing Fee of $50 will be $4,950. Lending Club does not receive any Processing Fee if the loan listing does not close and fund.
Unsuccessful Payment Fee
When an automatic payment fails and is rejected by the borrower's bank, an Unsuccessful Payment Fee may be charged to the borrower to cover the cost Lending Club incurs on the transaction. This could happen if there is insufficient balance in the borrower's bank account, the bank account has been closed or if the account is otherwise suspended. Each attempt to collect the monthly payment is considered a separate transaction, so an Unsuccessful Payment Fee may be assessed for each failed attempt. The amount of an Unsuccessful Payment Fee is $15.
Late Payment Fee
When a borrower's payment is late after a 15-day grace period, a Late Payment Fee may be assessed on the 16th day to compensate lenders for the delay. This fee is prorated and then passed on to the lenders. Lending Club does not receive any proceeds from Late Fees. The amount of a Late Payment Fee is the greater of 5.00% of the unpaid installment amount, or $15. This fee may be charged only once per late payment.
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