The CFPB has fined LendUp, a company once heralded as one of the "best in show" among fintech companies, $3.6 million for deceiving its customers.
In announcing the fine, the CFPB said that the company failed to give consumers the opportunity to build or improve credit.
"LendUp pitched itself as a consumer-friendly, tech-savvy alternative to traditional payday loans, but it did not pay enough attention to the consumer financial laws," CFPB Director Richard Cordray, said, as he announced the fine. "The CFPB supports innovation in the fintech space, but startups are just like established companies in that they must treat consumers fairly and comply with the law."
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
