In recent months, there has been widespread MyInstantOffer Ripoff reports from borrowers and investors alike. In this article, we’ll give you a detailed analysis of MyInstantOffer ripoff reports going all the way back to 2009.
MyInstantOffer is one of the world’s leading peer-to-peer online lending platforms. The website is a subset of Lending Club, the world’s largest online lenders, founded in 2007 and headquartered in San Francisco.
People have been asking “Is MyInstantOffer legit?” since it was first founded. As a p2p lending platform, borrowers and investors are bound to question its legitimacy, especially since there are so many scam platforms on the market.
However, these MyInstantOffer ripoff concerns precipitated after the 25th of April, 2018, when The Federal Trade Commission (FTC) filed a complaint against Lending Club. The case is currently pending but its details have been made public.
We have written this article in light of FTC’s MyInstantOffer ripoff claims.
In this article, we’ll give you an overview of the six most common complaints borrowers have against MyInstantOffer Pre Approval Loans. Following that, we’ll give you an overview of MyInstantOffer ripoff reports.
Common Complaints against MyInstantOffer
The following are the five most common complaints that borrowers have about Lending Club.
1) Denial of Loan Applications:
The most common complaint against Lending Club is its extremely strict loan approval procedure. To apply for a loan, the borrowers must have a credit score of over 600 along with a stable high-income job or a net worth of at least $250,000.
2) High-Interest Rates:
People often go to p2p online lenders because of their great interest rates. However, in some situations, borrowers complain that the interests are still too high. This is usually only true if the borrower has a poor credit score or if they are taking out the loan for over 36 months. If you manage your credit, high-interest rates should not be an issue for you.
3) Expensive Loan Payments:
MyInstantOffer provides fixed-rate loans that have to be cleared off in 36 or 60 months. As such, if you borrow $40,000 and opt to clear that off within 3 years, you’ll have to make expensive loan payments. This is not really a MyInstantOffer issue because they are transparent about their payments. This is rather the borrower’s fault as they should only take as much loans as they can afford.
4) Constant Lending Club Calls:
Borrowers often complain that Lending Club calls them too often. However, upon closer inspection, it turns out that Lending Club only calls borrowers when they are late in making payments or have defaulted. As such, if you don’t want to receive calls from Lending Club, you should make your payments on time.
Lending Club is not available in West Virginia or Iowa. That’s why certain prospective borrowers complain about it often.
As you can probably see for yourself, the aforementioned complaints don’t prove that MyInstantOffer is a ripoff. They are simply examples of disgruntled borrowers that don’t do their research or read the terms and conditions before taking loans.
Federal Trade Commission’s MyInstantOffer Ripoff Allegations
On the 25th of April, 2018, the Federal Trade Commission charged MyInstantOffer with deceiving their customers.
The Federal Trade Commission claims that Lending Club offered false promises to its customers. Their prime allegation was that Lending Club promised that customers would receive loans without any hidden fees. However, they actually charged hundred or thousands of dollars in hidden up-front fees.
Reilly Dolan, the acting director of FTC’s Bureau of Consumer Protection, said, “This case demonstrates the importance to consumers of having truthful information from lenders, including online marketplace lenders. Stopping this kind of conduct will help consumers make informed choices about loan offers.”
According to FTC, Lending Club stands guilty of the following actions:
- Charging hidden up-front fees from users despite prominently advertising “no hidden fees”.
- Telling applicants that their loans have been backed by investors knowing that many of them will never get their loan applications approved. This prevents prospective borrowers from seeking other loan opportunities.
- Charging customers who had canceled automatic payments or even those who had completely paid off loans.
- Not seeking customers’ acknowledgment before sharing private information that was collected from them.
These are all serious charges leveled against MyInstantOffer Lending Club. However, as of now, these are only allegations as the case is pending.
MyInstantOffer Ripoff Report, Scams, Lawsuits and Frauds Reported
FTC’s MyInstantOffer ripoff report has shed light on the fact that MyInstantOffer has a long history of scam and fraud allegations level against it.
In May 2017, random individuals started receiving messages from a Scott Sanbarn, supposed CEO of Lending Club. The message stated that they had been pre-approved for a $20,000 loan as long as they responded within a given time frame.
Users that tried to apply for the loan were scammed out of hundreds of dollars and they suspected their private information was also stolen and sold to third-parties.
The situation highlighted above is just one of the thousands of similar MyInstantOffer ripoff reports and complaints that have been filed over the past decade. The following are brief highlights of some of the other complaints:
- Lending Club was charging a $3,000 fees for a $6,000 loan.
- Lending Club kept ignoring a user’s emails regarding paying off the account. As a result, they had to pay an additional interest of $350 due to the late payoff. Lending Club refused to waive off the additional interest.
- They charged an unbelievable high interest of $1,000 off the top of the loan. As a result, it ended up increasing the interests of debt consolidation.
- They send out messages of pre-approval for loans in order to retrieve the user’s personal information including ID, utility bill, check stubs, etc. Once they have the information, they simply stop responding and deny the loan on a technicality.
All of the aforementioned complaints have been made in public forums. As such, they are all completely unverified and stripped of context.
As such, it’s important to take these MyInstantOffer reports with a grain of salt. While you should take them into consideration, it’s important to wait to hear from FTC’s case against Lending Club first.