Flurish, Inc., d/b/a LendUp
On September 27, 2016, the Bureau took action against online lender Flurish, Inc., doing business as LendUp, for failing to deliver the promised benefits of its products and failing to comply with consumer finance laws. The Bureau found that the company did not give consumers the opportunity to build credit and provide access to cheaper loans, as it claimed to consumers it would, failed to have appropriate policies and procedures regarding credit reporting, failed to disclose certain fees, and misstated annual percentage rates for some consumers. LendUp’s conduct violated the Consumer Financial Protection Act of 2010’s prohibition on deception and unfairness as well as the Fair Credit Reporting Act and its implementing Regulation V, and the Truth in Lending Act and its implementing Regulation Z. The Bureau has ordered the company to provide more than 50,000 consumers with approximately $1.83 million in refunds. The company will also pay a civil monetary penalty of $1.8 million.
Related documents
Press release
CFPB Orders LendUp to Pay $3.63 Million for Failing to Deliver Promised Benefits