CFPB

CFPB To LendUp: You Failed To Deliver, Pay Up $3.63 Million

The Consumer Financial Protection Bureau said on Tuesday (Sept. 27) that it has taken action against an online lender, LendUp, with fines levied of $1.8 million and an additional civil penalty of $1.8 million.

In a statement, the CFPB said that LendUp failed to deliver on its its stated promises to consumers. As noted by the bureau, the firm offers single payment loans and installment loans across 24 states and had marketed its products as a way for consumers to bring their credit scores up. The LendUp model also promised consumers that, as they maintained and took advantage of loans (including payday loans), they would be entitled to move up the so-called “LendUp ladder.” That would bring borrowers up to higher loans with relatively favorable terms.

Under the terms of the penalties brought against the company and violations found in contrast to Dodd-Frank and other legislative lending mandates, LendUp was found to have misled borrowers. For example, the more favorable loans were available in California in some instances but not in other states. The firm also was unclear on credit terms and failed to report information to credit bureaus. The redress includes measures that seek to ensure accurate pricing and lending information to borrowers.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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