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LendUp’s Loan Shark Shenanigans
The unraveling of a fintech short-term loan business has painful consequences
I’ve written before about fintech lender LendUp and its trouble with regulators — which really points to the trouble it had being an honest broker in the short-term loan space.
“LendUp was backed by some of the biggest names in venture capital,” said CFPB Director Rohit Chopra. “We are shuttering the lending operations of this fintech for repeatedly lying and illegally cheating its customers.”
As a result of the order, LendUp Loans has agreed to halt making any new loans and collecting on certain outstanding loans, as well as to pay a penalty, to resolve a September 2021 lawsuit alleging that it continued to engage in illegal and deceptive marketing in violation of a 2016 CFPB order.
An Update
Jason Mikula at Fintech Business Weekly has an update on LendUp as the company moves through the bankruptcy process.
LendUp, a once-highflying fintech “alternative” to payday…
