In April 2018, the FTC sued LendingClub for violating several laws and using deceptive patterns to deceive loan applicants. LendingClub falsely promised borrowers that they would receive a specific loan amount with "no hidden fees," but in reality, the company deducted hundreds or even thousands of dollars in hidden up-front fees from the loans. LendingClub also misled consumers by approving loans that were not actually approved and taking money from consumers' bank accounts without authorization. Despite warnings from its own compliance department, LendingClub continued to use dark patterns and conceal the up-front fee that was likely to mislead consumers. This conduct violated Section 5(a) of the FTC Act, which prohibits deceptive acts or practices that misrepresent or omit material facts. Additionally, LendingClub's actions were deemed unfair under Section 5 of the FTC Act because they caused substantial injury to consumers that they could not reasonably avoid themselves and were not outweighed by any benefits. Moreover, LendingClub failed to provide consumers with clear and conspicuous privacy notices as required by both the Privacy Rule and Reg. P. Both the initial and annual privacy notices must be accurate and reflect the financial institution's privacy policies and practices.