NEW YORK (TheStreet) -- Shares of LendingClub(LC) - Get Report were falling 3.8% to $12.80 on heavy trading volume Wednesday after the credit services company announced its Springstone Financial subsidiary reached a settlement with the the Consumer Financial Protection Bureau.
The settlement is related to the possible borrower confusion about the terms of a deferred interest product. LendingClub terminated the product should after it acquired Springstone in April 2014.
As part of the settlement with the CFPB, Springstone will pay a restitution of $700,000 to certain borrowers that were in its finance program from 2009 to 2014.
LendingClub said the settlement will not result in an adverse financial charge and that neither it nor Springstone will admit any wrongdoing as part of the settlement.
About 5.8 million shares of LendingClub were traded by 3:05 p.m. Wednesday, above the company's average trading volume of about 4.7 million shares a day.