Loan Company LendUp Does Not Keep Its Promises Of Lower Interest Rates And Better Loan Terms To Its Borrowers – Class Action
Lending company LendUp Loans, in a class action lawsuit, is accused of not fulfilling its marketing promise to its repeat clients that they could get better debt terms if they choose to continue transacting with the company.
Government Bureau Accuses LendUp Of Violating The Law
The LendUp Loans High Interest Class Action Lawsuit is a case filed by the plaintiff Consumer Financial Protection Bureau. Filed in a California court, the class action argues that instead of giving borrowers better and more favorable loan terms, LendUp instead resorted to giving its returning borrowers the same interest rates they have had or higher.
The Consumer Financial Protection Bureau argues that the lending company has made misleading marketing representations concerning the purported benefits of continuing to borrow money from it.
LendUp Loans offers a program where it awards borrowers who repay their loans on time to access better interest rates. Besides that, the company has an offering wherein it allows prudent borrowers to join its free financial course options via its official site to earn points.
These points can be added up so that the LendUp borrowers can get a better standing with the company – eventually having the opportunity to gain better loan interests and terms.
However, the abovementioned claims did not materialize, for the lending organization allegedly failed to provide its returning borrowers the favorable loan terms it had promised to them. Worse, some even got harsher interests and/or terms despite their previous good financial standing with LendUp Loans.
Key Information Surrounding The Class Action Filing
It is worth noting that LendUp Loans was already admonished by officials from the Consumer Financial Protection Bureau back in 2016, wherein it was slapped with a Consent Order disallowing it from sharing misleading marketing claims about the purported benefits of taking out a loan with LendUp Loans.
The LendUp Loans High Interest Class Action Lawsuit is seeking to take LendUp Loans to court for alleged violations of the Equal Credit Opportunity Act (ECOA) and the Consumer Financial Protection Act (CFPA). Additionally, the class action is looking to hold the lender accountable for allegedly not being able to give accurate and timely adverse-action messages and notifications to potential borrowers.
The Consumer Financial Protection Bureau is a federal agency that aims to monitor different financial institutions such as lenders, banks, and the like and their practices to ensure that they comply with the law and play with the best interests of the everyday consumer.
This is not the only financial organization sued by the government agency. For example, it was able to clinch a deal with Nationstar Mortgage, which forced the company to pay up $91 million to settle the charges that included it purportedly harming its borrowers’ best financial interests with its deceptive actions.
More Details About LendUp Loans
LendUp Loans is an online loan company that provides different loan type packages to its potential customers. Founded by Sasha Orloff and Jake Rosenberg, the company touts itself as a ‘socially responsible lender’ to Americans with poor credit standing who cannot seek out loans from other banks and financial institutions. LendUp Loans’ headquarters is located in San Francisco, California.
Editor’s Note on LendUp Loans High Interest Class Action Lawsuit:
This article reports on the issue against LendUp Loans after customers who were promised better loan terms did not receive any of the claims assured by the company. Similarly, we also suggest you the Bank of America Improper Fees Settllement.
Case Name(s) & No.(s): Consumer Financial Protection Bureau v. LendUp Loans, LLC; Case No.: 3:21-cv-06945
Jurisdiction: United States (U.S.) District Court for the Northern District of California
Allegation(s): LendUp Loans’ marketing claims were not met after borrowers were not able to enjoy lower interests and better loan terms.
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