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How to Delete a Bank Lending Club Account: A Comprehensive Guide

The process to delete a Bank Lending Club account is not straightforward and doesn’t involve a simple “delete” button within your online profile. Because Lending Club is involved in financial transactions and regulatory compliance, a direct deletion isn’t possible. Instead, you must close your account and then request personal information deletion following a specific protocol. You achieve this by contacting Lending Club’s customer service and explicitly requesting account closure and data deletion, subject to their retention policies.

Understanding Lending Club’s Account Structure

Before diving into the deletion process, it’s crucial to understand Lending Club’s structure. They operate primarily as a peer-to-peer lending platform. This means they connect borrowers with investors. Your account could function in one or both of these capacities:

Borrower Account: If you’ve taken out a loan through Lending Club, you have a borrower account.
Investor Account: If you’ve invested in loans facilitated by Lending Club, you have an investor account.

The steps for closing and requesting deletion will vary slightly depending on which type of account(s) you hold.

Step-by-Step Guide to Closing and Deleting Your Lending Club Account

Here’s a detailed breakdown of the process:

Step 1: Settle Outstanding Balances (Borrowers)

If you have an active loan, you must repay it in full before you can even begin the process of closing your account. This is non-negotiable. Lending Club, like any lender, requires complete loan fulfillment. Check your Lending Club dashboard for the total amount due and payment options.

Step 2: Liquidate Investments (Investors)

If you have an investor account, you need to liquidate all your investments. This means selling off your loan participation notes. This process can take time, as it depends on market demand and the performance of the loans you’ve invested in. Be patient and monitor your account until all investments are fully liquidated and the funds are available in your account. Keep in mind that selling loan participation notes may result in a loss if the loans aren’t performing well.

Step 3: Withdraw Remaining Funds

Once your loan (if applicable) is paid off and all investments are liquidated, withdraw any remaining funds from your Lending Club account to your linked bank account. A zero balance is essential for proceeding.

Step 4: Contact Lending Club Customer Support

This is the most crucial step. You cannot close your account or request data deletion through the website or mobile app. You must contact Lending Club’s customer support directly. You can do this via:

Phone: Call Lending Club’s customer service number, which can be found on their website.
Email: Send an email to their customer support email address, also available on their website.
Mail: Send a written request by mail. The address can be found on their website. This is the least convenient option.

Step 5: Explicitly Request Account Closure and Data Deletion

When contacting customer support, be very clear and specific in your request. State that you want to:

Close your Lending Club account(s) (both borrower and/or investor, if applicable).
Request the deletion of your personal information from their systems, to the extent permitted by law and their internal policies.

Don’t just ask to “close” your account. Emphasize that you also want your data deleted.

Step 6: Follow Up and Confirm

After submitting your request, follow up with Lending Club to ensure they have processed it. Ask for written confirmation that your account has been closed and that your data deletion request is being processed. This confirmation is important for your records. Note that complete data deletion may not be immediately possible due to regulatory requirements and internal policies.

Step 7: Monitor Your Credit Report

After receiving confirmation, monitor your credit report to ensure the Lending Club account is reported as closed. This typically takes a few billing cycles. If you see any discrepancies, contact Lending Club and the credit reporting agencies immediately.

Why Data Deletion Isn’t Always Immediate

It’s important to understand that Lending Club is legally obligated to retain certain data for a period of time, typically several years, to comply with regulations like the Bank Secrecy Act (BSA) and other anti-money laundering (AML) laws, as well as for tax reporting and audit purposes. This means that even after you request deletion, some of your information may be kept in their archives for a specified period. However, they should anonymize or pseudonymize the data where possible to protect your privacy.

Frequently Asked Questions (FAQs)

1. Can I delete my Lending Club account immediately?

No. You must first settle any outstanding loan balances, liquidate investments, and withdraw all funds. Only then can you request account closure and data deletion from Lending Club’s customer support.

2. What happens to my credit score when I close my Lending Club account?

Closing a Lending Club account, in itself, does not directly impact your credit score. However, the loan repayment history associated with the account will remain on your credit report, and the successful completion of the loan could positively influence your creditworthiness.

3. How long does it take to close a Lending Club account?

The time it takes varies. If you have outstanding loans or investments, it could take weeks or even months to fully liquidate everything. Once you’ve contacted customer support, the actual closure process typically takes a few business days.

4. Will Lending Club delete all my data after I request it?

Not necessarily. Lending Club is required by law to retain certain data for a specified period. However, they should delete or anonymize any data that is not legally required to be kept. Be sure to explicitly request data deletion to maximize what they can remove.

5. What information does Lending Club keep even after I close my account?

They may retain information such as transaction history, loan documents, and account activity logs to comply with regulatory requirements. The specific data retained and the retention period will depend on applicable laws and Lending Club’s internal policies.

6. Can I reopen my Lending Club account after I close it?

Potentially, but not guaranteed. You would likely need to go through the account creation process again, and approval would depend on your current financial situation and Lending Club’s current lending criteria.

7. Is there a fee to close my Lending Club account?

No, there is no fee to close your account.

8. What if Lending Club refuses to delete my data?

They are legally obligated to retain certain data. If they refuse to delete information beyond what is legally required, you can file a complaint with the Federal Trade Commission (FTC) or the Consumer Financial Protection Bureau (CFPB).

9. What if I can’t remember my Lending Club login information?

Use the “forgot password” or “forgot username” options on the Lending Club website. If you still can’t access your account, contact customer support for assistance. You’ll likely need to provide identifying information to verify your identity.

10. How do I know if my Lending Club account is actually closed?

You should receive written confirmation from Lending Club. You can also try logging into your account. If it’s closed, you shouldn’t be able to access it. Furthermore, monitor your credit report to confirm the account is reported as closed.

11. What are the alternatives to closing my Lending Club account?

If you’re hesitant to completely close your account, you could simply stop using it and remove your linked bank account information. However, this doesn’t guarantee that your data will be deleted.

12. Does this process apply to LendingClub Bank accounts?

Yes and No. While the overall theme applies to both, LendingClub Bank has more of a traditional banking structure and is covered by FDIC insurance. Since LendingClub aquired Radius bank and then rebranded to LendingClub Bank, it may have slightly different account closure and deletion policies. Confirm this with LendingClub’s customer support.

Closing your Lending Club account and requesting data deletion requires patience and persistence. By following these steps and understanding their policies, you can successfully navigate the process and protect your privacy. Remember to be clear and concise in your communication with Lending Club and to keep records of all your interactions.