Lendbee Class Action Lawsuit, Unauthorized Text Messages Violate Federal Law, Up To $1,500 Per Text At Stake
Lendbee, LLC faces a federal class action lawsuit filed in July 2025 alleging the online loan marketplace sent unauthorized telemarketing text messages to consumers whose phone numbers were registered on the National Do Not Call Registry, violating the Telephone Consumer Protection Act. The lawsuit, filed in California’s Central District Court, claims Lendbee failed to obtain express written consent before sending promotional loan offers, potentially exposing the company to statutory damages of $500 to $1,500 per illegal text message sent to each affected consumer.
If you received unsolicited text messages from Lendbee about loan offers, you may be part of a growing class action that could result in substantial compensation.
The Federal Lawsuit Against Lendbee
On July 8, 2025, plaintiff Kevin Hillow filed a class action complaint against Lendbee, LLC in the United States District Court for the Central District of California (Case No. 8:25-cv-01471). The lawsuit alleges Lendbee violated the Telephone Consumer Protection Act by sending unauthorized telemarketing text messages to phone numbers registered on the National Do Not Call Registry.
According to court records, Lendbee operates as an online lending marketplace that connects borrowers with multiple lending partners for personal loans ranging from $5,000 to $100,000. Rather than directly issuing loans, Lendbee serves as an intermediary platform where consumers can apply for loans that are then funded by various third-party lenders if approved.
The TCPA lawsuit claims Lendbee sent marketing text messages promoting their loan services without first obtaining express written consent from recipients. Under federal telecommunications law, companies must secure explicit permission before using automated systems to contact consumers whose numbers appear on the Do Not Call Registry—a violation Hillow alleges Lendbee committed systematically.
The plaintiff is represented by Fred W. Slaughter of Edelsberg Law, a firm specializing in consumer protection and TCPA litigation. As of January 2026, the case remains in early litigation stages with no settlement announced.
Why TCPA Violations Matter for Consumers
The Telephone Consumer Protection Act, enacted in 1991 and strengthened through subsequent amendments, protects consumers from unwanted telemarketing calls and text messages. The law requires companies to obtain prior express written consent before using automatic telephone dialing systems or artificial or prerecorded voices to contact cell phone numbers.
For text messages specifically, the Federal Communications Commission extended TCPA protections to SMS communications. Companies sending promotional texts to numbers on the Do Not Call Registry face strict liability—meaning consumers don’t need to prove actual damages, just that the violation occurred.
Statutory damages under the TCPA allow affected consumers to recover $500 per violation. If a court finds the company willfully or knowingly violated the law, damages treble to $1,500 per illegal text message. In class action lawsuits involving thousands of recipients and multiple messages, these penalties can quickly accumulate into millions of dollars.
Similar TCPA class actions against lenders and financial services companies have resulted in substantial settlements. The Cash App class action lawsuit settlement involving unsolicited text messages resulted in a $12.5 million payout to Washington consumers who received marketing texts without consent.
Lendbee’s Business Model and Marketing Practices
Lendbee positions itself as a streamlined online platform connecting borrowers with lending opportunities. The company’s website states it helps consumers access personal loans from $5,000 up to $100,000 with APRs ranging from 4.99% to 34.99%, depending on creditworthiness and the specific funding partner.
To qualify for loans through Lendbee’s network, borrowers must be at least 18 years old, possess a Social Security number, and maintain an active checking account. The company runs credit checks and forwards approved applications to partner lenders who ultimately fund the loans.
This lending network model allows Lendbee to offer multiple financing options that may not be available through traditional banks. However, the company’s customer acquisition strategy—which the lawsuit alleges included sending unsolicited text messages—has now landed them in federal court.
Text message marketing has become increasingly popular among financial services companies seeking to reach mobile-first consumers. However, companies must navigate complex compliance requirements under the TCPA, National Do Not Call Registry regulations, and state-specific consumer protection laws.
What You Must Know
TCPA Litigation Surge in 2025
The Lendbee lawsuit arrives amid an unprecedented surge in TCPA litigation. According to legal industry reports, TCPA cases increased nearly 95% in 2025 compared to the previous year, fueled by regulatory uncertainty and evolving interpretations of the law.
A June 2025 Supreme Court decision in McLaughlin Chiropractic Associates v. McKesson Corp. ended binding deference to Federal Communications Commission interpretations of the TCPA. This ruling opened the door for federal courts to independently interpret the statute, creating a patchwork of conflicting decisions across different judicial districts.
Some courts have ruled that text messages don’t constitute “telephone calls” under the TCPA’s strict statutory language and therefore aren’t subject to Do Not Call Registry protections. Other courts have upheld FCC interpretations extending TCPA protections to SMS communications. This legal uncertainty has emboldened plaintiffs’ attorneys while simultaneously creating compliance challenges for businesses.
Current Case Status and Timeline
As of January 2026, the Lendbee class action remains in preliminary stages. Court records from Justia indicate the case was filed July 8, 2025, with the docket last updated that same date. The case has not yet progressed to class certification, settlement negotiations, or trial.
In class action lawsuits, courts determine liability based on verified evidence and applicable consumer protection laws. Lendbee will have opportunities to respond to the allegations, challenge class certification, and potentially negotiate a settlement before trial.
Typical TCPA class action timelines span 12 to 36 months from filing to resolution, depending on case complexity and whether parties reach settlement. Early-stage cases like Hillow v. Lendbee rarely provide public updates until significant litigation milestones occur.
Similar to ongoing consumer protection lawsuits against companies like Shein, which faced $700,000 in settlements for shipping violations plus separate TCPA claims over illegal text messages, Lendbee’s case demonstrates regulators’ and plaintiffs’ attorneys’ increasing focus on digital marketing compliance.
What to Do Next
Check If You’re Affected
Review your text message history for messages from Lendbee or similar loan marketplace platforms. Look for promotional texts about personal loan offers, especially if you never provided express written consent to receive such messages.
Key indicators you may be affected include receiving texts from Lendbee between 2024 and July 2025, having your phone number registered on the National Do Not Call Registry during that period, and never signing an agreement authorizing Lendbee to send you marketing texts.
Document everything: take screenshots of the text messages showing the sender, date, time, and message content. Check your phone records to verify the number that sent the texts. If you responded “STOP” but continued receiving messages, document those interactions as well.
Monitor the Case Status
The Lendbee lawsuit is publicly accessible through the federal court system’s PACER database. To access case documents, visit PACER at pacer.uscourts.gov and search for Case No. 8:25-cv-01471 in the Central District of California.
Free alternatives include Justia Dockets at dockets.justia.com and Law360, though the latter requires a subscription for full access. These platforms provide docket updates, filed motions, and court orders as the case progresses.
Watch for key litigation milestones including the defendant’s answer or motion to dismiss, the plaintiff’s motion for class certification, court rulings on class certification, settlement announcements, and any deadlines to file claims or opt out of the settlement.
If a settlement is reached, the court will appoint a settlement administrator who establishes a dedicated website with claim forms and deadlines. Settlement websites are typically announced through direct mail notices to class members and posted on the court docket.
Consider Your Legal Options
If you received multiple unsolicited text messages from Lendbee, you may have individual claims worth pursuing. The TCPA allows consumers to file their own lawsuits without joining a class action, which could result in higher individual recovery if you received numerous messages.
Consult with a consumer protection attorney who specializes in TCPA cases to evaluate your specific situation. Many TCPA attorneys work on contingency, collecting fees only if you win or settle your case. The statute allows prevailing plaintiffs to recover attorney fees, making these cases attractive for law firms.
You have one year from the date of the last violation to file a TCPA claim. If Lendbee sent you unauthorized texts in 2024 or 2025, you still have time to pursue individual legal action. However, the statute of limitations is strict, so don’t delay consultation with legal counsel.
Protect Yourself from Future Violations
Register your phone number on the National Do Not Call Registry at donotcall.gov if you haven’t already. While registration doesn’t stop all unwanted calls and texts, it provides legal protection under the TCPA and strengthens any future claims you may need to file.
When applying for loans, mortgages, or financial services online, carefully read consent language before clicking checkboxes or providing your phone number. Look for terms like “express written consent to receive telemarketing calls and texts” and opt out when possible.
Use your phone’s built-in blocking features to filter unknown senders. On iPhone, enable “Filter Unknown Senders” in Messages settings. On Android, use spam protection features in your Messages app. Report spam texts to your wireless carrier by forwarding them to 7726 (SPAM).
If you continue receiving unwanted texts after opting out, send a clear written demand via email or certified mail instructing the sender to stop all communications. Keep copies of your opt-out requests as evidence if you need to file a TCPA claim later.
FAQs
What is the Lendbee class action lawsuit about?
The lawsuit alleges Lendbee, LLC violated the Telephone Consumer Protection Act by sending unauthorized telemarketing text messages to consumers whose phone numbers were registered on the National Do Not Call Registry. Plaintiff Kevin Hillow filed the case in California federal court in July 2025, claiming Lendbee failed to obtain express written consent before sending promotional loan offers.
How much money can I get from the Lendbee lawsuit?
The TCPA provides statutory damages of $500 per illegal text message, or up to $1,500 per text if violations were willful or knowing. If you received multiple unauthorized texts from Lendbee, potential compensation could range from hundreds to thousands of dollars depending on the number of messages. However, no settlement has been announced as of January 2026, and actual payout amounts won’t be known until the case resolves.
Has there been a settlement in the Lendbee lawsuit?
No. As of January 2026, the case remains in early litigation stages with no settlement announced. The lawsuit was filed July 8, 2025, and is still proceeding through preliminary court processes. Settlement negotiations, if they occur, typically happen months or years after filing in complex class action litigation.
Who qualifies to join the Lendbee class action?
While the court has not yet certified a class, the lawsuit potentially covers all consumers who received unauthorized telemarketing text messages from Lendbee while their phone numbers were registered on the National Do Not Call Registry. Specific eligibility requirements and the class period will be defined if and when the court grants class certification.
Is Lendbee still in business?
Yes. As of January 2026, Lendbee continues operating as an online loan marketplace connecting borrowers with lending partners. The pending lawsuit has not resulted in any injunctions preventing Lendbee from conducting business, though the company may face restrictions on text message marketing practices as the case progresses.
Can I opt out and file my own lawsuit against Lendbee?
If a settlement is eventually reached, class members will have the option to opt out and pursue individual claims. However, until a settlement is proposed and the court sets opt-out deadlines, you can still file your own TCPA lawsuit if you received unauthorized texts. You have one year from the last violation to file under TCPA’s statute of limitations. Consult with a TCPA attorney to evaluate whether individual litigation makes sense for your situation.
How do I file a claim if there’s a settlement?
If the parties reach a settlement, the court will appoint a settlement administrator who establishes a dedicated claims website and mails notice to potential class members. The notice will include claim forms, eligibility requirements, deadlines, and estimated payment amounts. Claims are typically filed online through the settlement website or by mailing completed claim forms to the administrator. Watch the case docket at dockets.justia.com or pacer.uscourts.gov for settlement announcements.
Last Updated: January 20, 2026
Disclaimer: This article provides general information about the Lendbee class action lawsuit and is not legal advice for your specific situation.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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