Consumer Bureau Action Tracker

CFPB – Flurish, Inc., d/b/a LendUp


State

California

target

Flurish, Inc., d/b/a LendUp

Topics

Payday Loans, Small-Dollar Lending, Civil Penalty Fund, Enforcement

The CFPB fined LendUp, “company backed by the venture capital arm of Google’s parent company, Alphabet,” $6.3 million for hiding the “true cost” of their loans for which there were “annual interest rates in the triple digits” and for advertising products nationwide that were only available in California. The CFPB also alleged LendUp failed to “give information about borrowers’ loans to credit reporting companies” meaning “that consumers’ credit ratings didn’t actually get the boost the company said it could offer.” Under the settlement agreement, 50,000 customers would receive $1.8 million in refunds and LendUp would pay a $1.8 million civil penalty, while LendUp did not admit wrongdoing.

  • In September 2016, the CFPB fined LendUp, a “company backed by the venture capital arm of Google’s parent company, Alphabet,” for misleading customers and a failure to “live up to its promises.” [Andrea Peterson, “Regulators crack down on Alphabet-backed payday lender”, The Washington Post, 09/28/16]
  • LendUp “bill[ed] itself as an alternative to traditional payday lenders” but “the company has agreed to pay a total of $6.3 million in penalties” for misleading advertisements that advertised products nationwide that were only available in California, and that they “hid the true cost of the loans — which [could] come with annual interest rates in the triple digits.” The complaint also alleged that LendUp “failed to give information about borrowers’ loans to credit reporting companies” meaning “that consumers’ credit ratings didn’t actually get the boost the company said it could offer, according to the agency.” [Andrea Peterson, “Regulators crack down on Alphabet-backed payday lender”, The Washington Post, 09/28/16]
  • “Under a consent order with the CFPB, more than 50,000 consumers will receive a total of about $1.8 million in refunds from LendUp, and the company will pay a $1.8 million civil penalty. LendUp did not admit wrongdoing in either agreement.” [Andrea Peterson, “Regulators crack down on Alphabet-backed payday lender”, The Washington Post, 09/28/16]

Status

Inactive or Resolved


2016-CFPB-0023 9/27/2016 9/27/2016

CFPB Orders LendUp to Pay $3.63 Million for Failing to Deliver Promised Benefits
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/flurish-inc-db-lendup/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Nonbank
  • $6,300,000
  • 50,000

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