CFPB to distribute $39M+ to consumers misled by fintech LendUp Loans

The CFPB has announced that 118,101 consumers who were deceived by LendUp Loans LLC will receive checks in the mail in the next few days.

LendUp Loans, headquartered in Oakland, California, offered single-payment and installment loans to consumers online and marketed itself as an alternative to payday lenders. A central component of LendUp’s marketing and brand identity was the “LendUp Ladder.” The company told consumers that by repaying loans on time and taking free courses through its website, consumers would move up the “LendUp Ladder” and receive lower interest rates on future loans and access to larger loan amounts. Tens of thousands of customers climbed the “LendUp Ladder” and still failed to qualify for larger loan amounts and continued to be offered similar or higher interest rates compared to previous loans.

The checks were scheduled to be sent through Epiq Systems yesterday. The total distribution amount is $39,833,748.87 and the money will come from the CFPB’s victims relief fund.