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Accelerated Inventory Management, LLC

In New York, we defend consumers against collection lawsuits, wage garnishments, and bank seizures. Payment plans are available. Whether you're facing credit card debt, medical debt, tuition bills, or other consumer debt, we can help.

In New York, Accelerated Inventory Management, LLC sues consumers on defaulted debt, and is located at 5725 W Us 290 Hwy Suite 103, Austin, Texas 78735, United States 855-528-1382. Here is its profile with the In New York, Accelerated Inventory Management, LLC sues consumers on defaulted debt, and is located at 5725 W Us 290 Hwy Suite 103, Austin, Texas 78735, United States 855-528-1382. Here is its profile with the Better Business Bureau.

If you need help, call us at (888) 271-7109, or complete this form.

Court Enforces Arbitration Agreement in Online Lending Platform Lawsuit

A consumer initiated a lawsuit after obtaining a loan from WebBank via the LendingClub online platform and subsequently defaulting on the loan repayments. The consumer sued Accelerated Inventory Management, LLC, Oliphant Financial, LLC, and others, arguing that the arbitration clause he agreed to during the loan application process was invalid due to ambiguity in its presentation. Despite this, the court sided with the defendants, enforcing the arbitration per the original agreement.

3 Key Points:

1. The consumer secured the loan through LendingClub's online platform and stopped making payments, prompting him to initiate a lawsuit.
2. The consumer disputed the validity of the arbitration agreement, arguing that the presentation of the "I Agree" buttons on the webpage was ambiguous and he didn't recall consenting to the clause in the Borrower's Agreement.
3. The court determined the arbitration clause in the online agreement to be valid and enforceable, compelling the consumer's lawsuit to arbitration.

Reason for the Lawsuit: The consumer decided to sue first due to his belief that his rights under the Fair Debt Collection Practices Act were violated when he was pursued for the defaulted loan payments. He also argued that he didn't knowingly consent to the arbitration clause when he obtained the loan, making the clause invalid.

Case Citation: Consumer v. Accelerated Inventory Management, LLC, Oliphant Financial, LLC; and John Does 1-5, 2:20-cv-967, signed on 02/19/2021.

Who is WebBank and LendingClub, and what is the relationship between the two?

WebBank and LendingClub are both financial institutions involved in the loan industry, with a particular focus on online lending.

WebBank is an FDIC-insured, state-chartered industrial bank headquartered in Salt Lake City, Utah. It specializes in providing niche financing solutions, including private-label, co-branded, and bank card programs. WebBank often partners with strategic businesses to provide specific financial solutions, such as credit card services and lending platforms.

LendingClub is an online peer-to-peer lending platform, also known as a marketplace lender, based in the United States. It was the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC), and to offer loan trading on a secondary market. Individuals and businesses can apply for loans on LendingClub's platform, and the loans are funded by investors who choose which loans to invest in.

The relationship between WebBank and LendingClub is essentially one of a lender (WebBank) and a platform (LendingClub). The way it typically works is that a borrower applies for a loan via LendingClub's platform. If approved, the loan is initially issued by WebBank, which leverages its ability to lend across the United States as a chartered bank. Shortly after the loan is issued, it is sold to LendingClub (or to investors on the LendingClub platform), and WebBank is no longer involved in the loan. Thus, WebBank essentially acts as the originating bank in the lending process with LendingClub functioning as the platform that facilitates the transaction and manages the loan after it's made.

This structure is quite common in the fintech world, allowing online platforms like LendingClub to offer financial products nationwide without themselves having to be licensed in every state. However, this arrangement has sometimes been legally contested, particularly when it comes to questions of which entity—the fintech platform or the bank—is the "true lender," which can have implications for what state and federal laws apply to the loan.

If you need help, call us at (888) 271-7109, or complete this form.

If you need help, call us at (888) 271-7109, or complete this form.