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Online Lending’s Ugly Quarter Stretched Far Beyond LendingClub

Aug. 25, 2016, 4:00 AM

LendingClub Corp. wasn’t alone in its suffering during the second quarter.

Online lending to U.S. consumers tumbled 34 percent industrywide from the first quarter as investors pulled back from funding loans, according to a report Aug. 24 from Orchard Platform, a data provider tracking the sector. That’s even worse than the 29 percent drop at LendingClub, where the surprise resignation of its leader in May rattled confidence.

Global market turmoil at the start of the year and an uptick in online loan charge-offs had left many buyers of the debt on edge before LendingClub announced Chief Executive Officer Renaud Laplanche ...

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