Fintech
CFPB will distribute nearly $40 million to consumers defrauded by fintech firm LendUp Loans
This month, 118,101 consumers deceived by LendUp Loans LLC will receive checks in the mail. LendUp Loans, based in Oakland, California, offered installment and single-payment loans to consumers online and marketed itself as an alternative to payday lenders. A central component of LendUp’s marketing and brand identity was the “LendUp Ladder”. The company told consumers that by repaying loans on time and taking free courses through its website, consumers would move up the “LendUp Ladder” and receive lower interest rates on future loans and access to amounts of larger loan. Tens of thousands of customers climbed the “LendUp Ladder” and still failed to qualify for larger loan amounts and continued to receive similar or higher interest rates than previous loans.
If you were one of the 118,101 consumers harmed by LendUp’s practices, a payment will be sent to you on May 8, 2024 through Epiq Systems. You can learn more about the distribution at cfpb.gov/payments/Lendup. If you have any questions about receiving a payment, please email info@cfpb-LendUp.org or call 1 (888) 622-1598.
The total amount of the distribution is $39,833,748.87 and the money will come from the CFPB relief fund for victims.
Action against LendUp
After multiple enforcement actions against LendUp over the years, LendUp was ordered to stop making new loans. In 2016, the CFPB ordered LendUp to stop misrepresenting the benefits of borrowing from the company, and in 2020 the CFPB sued LendUp for allegedly violating the Military Lending Act. In September 2021, the CFPB filed a class action lawsuit against LendUp alleging that the company misled consumers about the benefits of repeat lending, violated the CFPB’s previous 2016 order, and failed to provide timely and accurate notices of adverse actions as required by fair lending laws.
This latest ruling permanently prohibits LendUp from making new loans, collecting certain outstanding loans to aggrieved consumers, selling consumer information, and making misrepresentations when servicing loans or collecting debts or assisting others who do so.