LendUp Loans, LLC
On September 8, 2021, the Bureau filed a lawsuit in the United States District Court for the Northern District of California against LendUp Loans, LLC. LendUp is an online lender offering single-payment and installment loans to consumers. The Bureau alleges that LendUp’s brand identity is tied to its marketing claims that repeat borrowers will accrue points and ascend the “LendUp Ladder,” gaining access to loans with more favorable interest rates or larger loan amounts as consumers reach higher Ladder levels. In 2016, the Bureau issued an administrative consent order against LendUp to address the Bureau’s finding that LendUp misled consumers about the benefits of its loans. That order prohibits LendUp from misrepresenting the benefits of borrowing from the company. In this action, the Bureau alleges that LendUp claimed that through on-time payments and repeat borrowing, consumers would ascend the LendUp Ladder to achieve the promised benefits and that many borrowers did not actually get those benefits. The Bureau alleges that LendUp’s marketing claims were deceptive under the Consumer Financial Protection Act of 2010 and violated the prohibitions of the 2016 Bureau’s consent order. The Bureau also alleges that LendUp failed to timely issue required adverse-action notices and failed to provide accurate denial reasons on its adverse-action notices to thousands of loan applicants, in violation of the Equal Credit Opportunity Act and Regulation B and that these violations constitute violations of the CFPA. The Bureau’s complaint seeks redress for consumers, injunctive relief, and a civil money penalty.