LendUp Loans, LLC
On December 4, 2020, the Consumer Financial Protection Bureau (Bureau) filed a lawsuit in the United States District Court for the Northern District of California against LendUp Loans, LLC (LendUp). LendUp, which has its principal place of business in Oakland, California, is an online lender that offers single-payment and installment loans to consumers. The Bureau alleged that LendUp violated the Military Lending Act (MLA) in connection with its extensions of credit. The Bureau alleged that since October 2016, LendUp has made over 4,000 single-payment or installment loans to over 1,200 covered borrowers in violation of the MLA. The Bureau specifically alleged that LendUp’s violations of the MLA include extending loans with an annual percentage rate that exceeds the MLA’s 36% cap, extending loans that require borrowers to submit to arbitration, and failing to make certain required loan disclosures. On January 20, 2021, the court entered a stipulated final judgment and order to resolve the lawsuit. The settlement requires LendUp to provide $300,000 in redress to consumers and to pay a $950,000 civil money penalty. The settlement also enjoins LendUp from committing future violations of the MLA and from collecting on, selling, or assigning any debts arising from loans that failed to comply with the MLA. It also requires LendUp to correct or update the information it provided to consumer reporting agencies about affected consumers.