LendingClub, Competitors Face Risks From Lawsuits: Moody’s

A proposed class action against LendingClub Corporation is credit negative for asset-backed securities (ABS) backed by consumer loans originated through online platforms using a partner bank origination model, Moody’s Investors Service says in a new report. The lawsuit confirms that the owners of such loans face legal challenges over whether the loans are exempt from state usury limits.

https://www.moodys.com/research/Moodys-Lending-Club-class-action-case-is-credit-negative-for–PR_348477?WT.mc_id=AM~RmluYW56ZW4ubmV0X1JTQl9SYXRpbmdzX05ld3NfTm9fVHJhbnNsYXRpb25z~20160506_PR_348477

http://www.bloomberg.com/news/articles/2016-05-06/moody-s-warns-of-lawsuit-s-risks-to-lendingclub-online-lenders