Lending Club services the borrower loans that correspond to Notes held in investor accounts. Lending Club collects loan payments from borrowers and distributes those payments net of fees to investors in the corresponding Notes. If Lending Club were to go out of business, investors’ ability to receive principal and interest payments on their Notes may be substantially impaired.
We have taken steps to protect investors and borrowers if Lending Club were to go out of business. For example, we have executed a backup servicing agreement with Portfolio Financial Servicing Company (“PFSC”). Under this agreement, PFSC has agreed to service the loans as a back-up servicer. Read more about the specific risks of investing with Lending Club in the Prospectus available at https://www.lendingclub.com/info/prospectus.action
or in the summary available at https://www.lendingclub.com/public/risk-of-investing.action