FinTech: CFPB Shuts Down Payday Lender LendUp For Unfair Practices

December 23, 2021 | FinTech, News

LendUp agreed to settle and paid a penalty of $100,000.

The U.S. Consumer Financial Protection Bureau (CFPB) took fintech and payday lender LendUp to task for repeated deceptive marketing and other fair-lending violations. It imposed a $100,000 penalty, and directed the lender to stop issuing new loans and halt collecting on some outstanding ones. (Reuters)

According to the CFPB, LendUp agreed to the order.

LendUp positioned itself as a better alternative to other payday lenders by offering to reduce the interest chargeable on new loans once they repaid the old ones. However, in 2016, the CFPB penalized the fintech for not honoring that promise.

Repeated violations

The current order came after a September 2021 CFPB lawsuit alleging that LendUp continued to violate that 2016 order.

“We are shuttering the lending operations of this fintech for repeatedly lying and illegally cheating its customers,” CFPB Director Rohit Chopra said in a press release.

According to American Banker, LendUp said in an email that it is “pleased to have fully resolved its litigation with the CFPB” and noted it did not admit to liability in its agreement with the agency.

“As has previously been reported in the news, LendUp ceased originating loans in the summer. It expects to complete the wind-down of its operations in early 2022,” LendUp said in the statement.

LendUp website

Lendup’s webpage shows the following message currently:

“LendUp is no longer lending or servicing loans. If you previously had a loan with LendUp we thank you for your business. If you still owe money on a loan, we are happy to tell you all outstanding debts have been forgiven and no future collection attempts will be made by LendUp or any LendUp affiliates.”

Google Ventures, Andreessen Horwitz, Kleiner Perkins, PayPal Holdings, and QED Investors are some of LendUp’s investors.

Related Story: Digital Lending Platform LendUp Notches Up $2B in Loans

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…