The US Consumer Financial Protection Bureau ordered LendUp fintech company to pay a $100,000 fine, stop issuing new loans, and collect outstanding ones. The penalty was issued due to repetitive deceptive marketing and other fair-lending violations.
LendUp Continuously Deceived Its Customers
LendUp is a California-based lender that offers funding to online consumers who the banks usually overlook since they’re too risky.
However, the company repeatedly deceived and manipulated its customers, according to the CFPB. In addition, the CFPB lawsuit states that LendUp fintech company continued to violate a 2016 order deriving from similar charges.
The company deceived its customers about the benefits of repeat borrowing. It also failed to provide accurate action notices to clients required by fair lending laws.
This is why LendUp had to shut down its operations. Based on the official LendUp site, the company no longer provides services. Additionally, it states that all debts are forgiven, and LendUp will make no future collection attempts.
The fintech company attracted many Silicon Valley investors while it was operating. PayPal, Google Ventures, Andreessen Horwitz, and Kleiner Perkins all invested in LendUp.
Now it is forced to completely shut down in early 2022.