LendUp
 | |
| Private | |
| ISIN | 🆔 |
| Industry | Consumer Finance |
| Founded 📆 | 2012 |
| Founders 👔 |
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| Headquarters 🏙️ | San Francisco, California |
Area served 🗺️ | Nationwide |
Key people |
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| Products 📟 | payday loans; installment loans |
| Members | |
Number of employees | approx. 250 (Q3, 2018) |
| 🌐 Website | www |
| 📇 Address | |
| 📞 telephone | |
Flurish, Inc., doing business as LendUp, is a financial technology company that provides payday loans, credit cards, and installment loans, as well as financial education, access to credit reporting and gamification for responsible lending behavior.[1][2]It makes loans to customers that banks usually decline.[3] giving borrowers with poor credit scores access to credit cards and short term loans.[4]
In December 2020, LendUp was sued by the Consumer Financial Protection Bureau for violating the Military Lending Act;[5] a settlement was proposed in January 2021. In 2016, the company paid $6.3 million in fines for widespread violations of payday and installment loan laws.[6][7][8]
History[edit]
LendUp was cofounded by step brothers Sasha Orloff and Jake Rosenberg. Through school and early jobs they went separate ways. Orloff worked in consumer credit and then venture capital at Grameen Bank, World Bank and Citi. Following an internship at 16, Rosenberg became Yahoo! employee #80 and stayed for more than a decade, before joining Zynga as a platform CTO at 29. In the summer of 2011 Orloff asked Rosenberg to join him to found LendUp. They sought to solve problems with the financial services industry, which Rosenberg claimed could be solved through technology.[9][10]
LendUp graduated out of the Y Combinator batch of 2012.[11] It received $325 million in equity and debt financing from PayPal,[12] Kleiner Perkins Caufield & Byers, Google Ventures, Andreessen Horowitz, Alexis Ohanian and QED among others.[1][13][14][15][16]
In August, 2016 LendUp announced its Series C round of equity, led by Y Combinator.[17] In March 2017, LendUp announced it received a $100 million credit facility from Victory Park Capital and surpassed $1 billion in loan originations.[18]
In May 2017, LendUp quadrupled the number of credit cards it made available to consumers through its partnership with Beneficial State Bank.[19][20] As of May 2018, the company had surpassed this goal.[21] The cards featured longer-than-usual grace periods before late fees kicked in. Interest rates ranged from 21.74% to 31.74% percent on credit lines up to $2,000.[22]The card business grew more quickly than the firm's lending product.[23] LendUp referred to its customers as “the emerging middle class.”[24] Its customers generally have credit scores below 680.[14]
In November, 2017, the company announced that former Tesla executive William Donnelly joined as CFO.[25] Nigel Morris, co-founder of Capital One and QED Investors, was named chairman of the board in June 2018, joining board members including QED co-founder Frank Rotman, an early Capital One Financial Corp. executive and its long-time chief credit officer, Blake Byers of GV and board advisors including Carrie Dolan and Ali Rowghani.[21][26][27]
In January 2019, Anu Shultes was named CEO, replacing Orloff.[28]
Lawsuits[edit]
In September 2016, LendUp was fined by the Consumer Financial Protection Bureau for charging illegal fees, miscalculating interest rates and failing to report information to credit bureaus.[29]:533 The company agreed to pay $6.3 million in penalties and customer repayments.[30][6][31][32]
In December 2020, The Consumer Financial Protection Bureau sued LendUp for originating more than 4,000 loans to members of the military at an effective rate above 36%, exceeding a federal cap. [33] A settlement was proposed in January 2021. It stipulated that LendUp pay fines of $1.25m in addition to enjoining the company from collecting on, selling, or assigning any debts arising from loans that violated the Military Lending Act and required that it correct or update the information on borrowers that it provided to consumer reporting agencies.[34]
References[edit]
- ↑ 1.0 1.1 Gannes, Liz. "Kleiner Perkins, Andreessen Horowitz and Google Ventures Fund Payday Loan Alternative LendUp". October 10, 2012. All Things D. Retrieved 6 August 2013.
- ↑ Brancaccio, David (October 11, 2012). "The online game of borrowing money". Marketplace.
- ↑ Farr, Christina. "LendUp Uses 'Big Data' to Bring Better Small Dollar Loans To People In Need Better". October 10, 2012. VentureBeat. Retrieved 6 August 2013.
- ↑ Empson, Rip (21 June 2013). "Aiming To Disrupt Payday Lending, a16z-Backed LendUp Now Offers Instant Online And Mobile Loans". Techcrunch. Retrieved 8 January 2016.
- ↑ "Consumer Financial Protection Bureau Sues LendUp Loans, LLC for Allegedly Violating the Military Lending Act". Consumer Financial Protection Bureau. Retrieved 2021-04-14.
- ↑ 6.0 6.1 Jayakumar, Amrita (30 September 2016). "Payday loan alternative LendUp to pay $6.3 million for misleading customers". The Christian Science Monitor. Retrieved 11 July 2018.
- ↑ Wall Street Journal (September 28, 2016). "Lender ordered to pay total $6.3 million over payday-loan and installment-lending violations".
- ↑ Koren, James Rufus (2016-09-27). "Google-backed LendUp fined by regulators over payday lending practices". Los Angeles Times. Retrieved 2020-07-19.
- ↑ Blackwell, John Reid (September 2, 2017). "Online lending firm LendUp sees growth opportunity in Richmond area". Richmond Times-Dispatch. Retrieved 2018-09-16.
- ↑ Terzo, Gerelyn (July 25, 2017). "PayPal & LendUp Bridge Financial Inclusion Gap". deBanked. Retrieved 2018-09-16.
- ↑ "Winter 2012 Companies (YC W12) | Y Combinator Universe". ycuniverse.com. Retrieved 2018-04-22.
- ↑ Lawler, Ryan. "LendUp gets strategic investment from PayPal and adds to its executive team". Techcrunch. Retrieved 2018-09-18.
- ↑ "LendUp Closes $100M Credit Facility | PYMNTS.com". www.pymnts.com. Retrieved 2017-03-04.
- ↑ 14.0 14.1 Constine, Josh (January 22, 2016). "LendUp Scores $150M For A Credit Card That Won't Screw You Over". Techcrunch. Archived from the original on 2016-01-22. Retrieved 2018-09-16.
- ↑ Rudegeair, Peter (May 14, 2018). "Former Citigroup CEO Vikram Pandit Makes $100 Million Investment in Credit-Card Startup". Wall Street Journal. Retrieved 2018-09-16.
- ↑ Rao, Leena. "LendUp Raises Cash From Kleiner Perkins, Andreessen Horowitz, Google Ventures And Others To Disrupt Payday Loans". Techcrunch. Retrieved 2018-09-16.
- ↑ Rudegeair, Peter; Demos, Telis (2016-08-23). "Silicon Valley Lender Raises Nearly $50 Million for Subprime Credit-Card Push". Wall Street Journal. ISSN 0099-9660. Retrieved 2017-03-04.
- ↑ "LendUp Closes Another $100 Million Credit Facility & Surpasses $1 Billion In Loan Originations". Retrieved 2017-03-04.
- ↑ "LendUp launches a better credit card for people looking to improve their credit – TechCrunch". techcrunch.com. Archived from the original on 2013-06-23. Retrieved 2018-04-22.
- ↑ "LendUp Gives the Underbanked What No Traditional Bank Will - Finovate". Finovate. 2017-05-17. Retrieved 2018-04-22.
- ↑ 21.0 21.1 Mark Calvey (June 21, 2018). "San Francisco fintech LendUp adds star power to boardroom". San Francisco Business Times.
- ↑ Farrington, Robert (2018-09-27). "LendUp Review: What You Need to Know and Alternatives". The College Investor. Retrieved 2021-04-14.
- ↑ Verhage, Julie and Surane, Jennifer (June 21, 2018). "Capital One Co-Founder Is Making a Bet on Risky Borrowers". Bloomberg Business Journal. Retrieved 2018-09-16.CS1 maint: Multiple names: authors list (link)
- ↑ "Exclusive: S.F. fintech raises $100 million for subprime lending". www.bizjournals.com. Retrieved 2018-04-22.
- ↑ Wack, Kevin (November 7, 2017). "Former Tesla VP joins consumer lending startup". American Banker. Retrieved 2018-04-22.
- ↑ "Jake Rosenberg of LendUp with Ali Rowghani". Y Combinator YouTube channel. January 31, 2018. Retrieved 2018-09-16.
- ↑ Mark Calvey (June 28, 2017). "LendUp picks up PayPal as investor, Carrie Dolan as adviser". San Francisco Business Times. Retrieved 2018-09-16.
- ↑ Stone, Todd. "LendUp Gets a Shake-up". deBanked. Retrieved 2020-07-21.
- ↑ Van Loo, Rory (2018-07-01). "Technology Regulation by Default: Platforms, Privacy, and the CFPB". Georgetown Law Technology Review. 2 (2): 531.
- ↑ "CFPB Orders LendUp to Pay $3.63 Million for Failing to Deliver Promised Benefits". Consumer Financial Protection Bureau. Retrieved 2020-07-19.
- ↑ Wall Street Journal (September 28, 2016). "Lender ordered to pay total $6.3 million over payday-loan and installment-lending violations".
- ↑ Koren, James Rufus (2016-09-27). "Google-backed LendUp fined by regulators over payday lending practices". Los Angeles Times. Retrieved 2020-07-19.
- ↑ "LendUp overcharged military borrowers, CFPB says in lawsuit". American Banker. 2020-12-04. Retrieved 2021-04-14.
- ↑ "Consumer Financial Protection Bureau Settles with LendUp Loans, LLC for Military Lending Act Violations". Consumer Financial Protection Bureau. Retrieved 2021-04-14.
External links[edit]
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