LendingClub services the loans that are originated on its platform. Borrowers make payments on their loans to LendingClub, and in turn, LendingClub distributes payments to investors, net of fees. If LendingClub were to go out of business, investors may not receive the full amount of payments due and to become due on the Notes they invest in, or such payments may be delayed as bankruptcy or other proceedings make their way through the courts.
We have taken steps to ensure continuity to protect investors and borrowers if LendingClub were to go out of business. For example, we have executed backup and successor servicing agreements to provide a way for loans to continue to be serviced by one or more third parties in the event that LendingClub is no longer around. We believe that loan servicing is an important part of the investor and borrower experience and that maintaining a backup plan is vital for the peace of mind of our customers.
Read more about the specific risks of investing with LendingClub at: https://www.lendingclub.com/public/risk-of-investing.action.