LendUp, an online lending startup, had to pay $6.3 million in fine for charging illegal fees and miscalculating higher interest rates. LendUp, which was earlier known as Flurish Inc., is supported by Google's venture capital arm GV and other venture capital firms in Silicon Valley.
The California Department of Business Oversight or DBO and the Federal Consumer Financial Protection Bureau noted that the company has made several basic mistakes, including failing to calculate the interest rates.
DBO Commissioner Jan Lynn Owen said, "The illegal fees affected thousands of California borrowers and showed a persistent failure by LendUp to comply with California consumer protection laws. This settlement will help ensure harmed borrowers are made whole and LendUp is held accountable."
by RTT Staff Writer
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