Velocity Investments v. Canul CA6

I. BACKGROUND

Both Canul and Pascual took out loans on online credit platforms, which they failed to repay, and after the loans were charged off, Velocity purchased them and sued to recover the unpaid balance in Santa Clara County Superior Court. Although the cases were not consolidated, the parties were represented by the same counsel in both cases, they submitted largely identical briefing, and the trial court issued largely identical orders granting Velocity summary judgment and denying the motions of Canul and Pascual. We address the Canul case first and then Pascual. A. The Canul Case 1. The Loan On May 29, 2012, Canul submitted a request for a $15,000 loan to the online credit platform operated by LendingClub Corporation (LendingClub). On this platform, members seeking to borrow money could post loan requests, and members seeking investments could commit funds for the requested loans, which would close if the commitments totaling at least 60 percent of the requested amount. On May 29, 2012, Canul signed a loan agreement with WebBank, which issued the LendingClub loans. That same day WebBank provided a Truth in Lending Act (TILA) disclosure statement, which estimated that…