Pitfalls for the Unwary Borrower Out on the Frontiers of Banking Lisa Giordano of Brooklyn stopped making her loan payments to Lending Club last year. Credit Sara Krulwich/The New York Times Advertisement Silicon Valley has helped enhance just about every aspect of modern life. Naturally, Mohammad Mansour figured it could help solve his money problems, too. Mr. Mansour borrowed $7,680 from Lending Club, a San Francisco lender offering loans more conveniently and with lower interest rates than a traditional bank. He then obtained a $10,000 loan from Prosper, another online lender based in Northern California. An accountant from Queens, Mr. Mansour earns about $64,300 a year. He took out a third online loan and then a fourth. He now owes $31,600 to three virtual lenders. And he is struggling to pay off the debts. Continue reading the main story

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