The CFPB has fined LendUp, a company once heralded as one of the "best in show" among fintech companies, $3.6 million for deceiving its customers.
In announcing the fine, the CFPB said that the company failed to give consumers the opportunity to build or improve credit.
"LendUp pitched itself as a consumer-friendly, tech-savvy alternative to traditional payday loans, but it did not pay enough attention to the consumer financial laws," CFPB Director Richard Cordray, said, as he announced the fine. "The CFPB supports innovation in the fintech space, but startups are just like established companies in that they must treat consumers fairly and comply with the law."
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