On Friday, a Reddit thread was created criticizing LendingTree, Inc. (TREE)
amid complaints of misinformation regarding interest rates and financing availability, particularly for people with poor credit.
There were three main themes of criticism to the trending LendingTree thread.
1. Interest rates
Redditors wrote that while LendingTree’s platform offers financing options for many people, the rates can be astronomical. One user noted that when their credit was bad they guaranteed financing for 130 percent APR, which definitely puts a strain on those looking for credit options to make a large purchase.
2. Lack of availability for special projects
Another Reddit user commented that they wanted financing for a manufactured home. However, banks on LendingTree don't allow for financing for manufactured homes, something that this user believes was not advertised properly. While reasons may vary from the project's risk to the diverse options that can add or decrease the cost of the project, generally users of LendingTree’s platform were upset by the lack of transparency.
3. Unwanted advertisements
Finally, other users commented that if you sign up for LendingTree, you get unwanted mortgage junk mail that people have had a tough time stopping.
Shares of LendingTree recently traded at $90.40, up 0.57 percent on the day.
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