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Fintech Firm LendUp Pays $3.6 Million Over Misleading Borrowers

  • Enforcement action brought by CFPB and California agency
  • LendUp is among first online lender to face major penalty

LendUp has agreed to pay $3.63 million to settle allegations by a federal regulator that the online lending company didn’t help customers get cheaper loans and build credit as promised, representing one of the first major enforcement actions against a fintech company.

The lender, affiliated with San Francisco-based Flurish Inc., didn’t have lower priced loans available to consumers where they were advertised, misled customers about the true cost of the loans offered and at times didn’t provide borrowers’ information to credit reporting companies, the Consumer Financial Protection Bureau said in a statement Tuesday.