Pretty interesting.

http://www.pymnts.com/news/alternati...-up-fee-model/


"As noted by The Wall Street Journal, the firm makes loans that are at least somewhat above levels seen at state interest caps, often in tandem with bank agreements. But a legal challenge looms in the form of a recent federal-level court ruling, and if the ruling — Madden v. Midland Funding LLC — reshapes the lending landscape, the state-level interest rate caps would hold. WSJ notes that the ruling is at least one reason why the company’s shares have been sliced nearly in half in a little over a year since the firm’s initial public offering."

"Lending Club said Friday (Feb. 26) that it will boost the fees paid out to WebBank, which is owned by Steel Partners Holdings. WSJ noted that the conglomerate will “have its financial interests tied more to the repayment of the loan” because the fee gets paid out in installments that would end if the loan is not repaid on time. The company has also been in the midst of raising rates it charges to borrowers."