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LendUp Loan Class Action Lawsuit Overview:
- Who: LendUp Loans, LLC.
- What: LendUp Loans is accused of not fulfilling the agreement to offer customers better loan terms for borrowing on multiple loans, a new class action claims.
- Where: California
LendUp Loans offered customer’s a program where repeat borrowers could get better loan terms, but customers never saw those improved loan terms, a new class action lawsuit alleges.
In fact, LendUp Loans offered those borrowers the same or even worse terms and interest rates, according to the class action. The plaintiff, the Consumer Financial Protection Bureau, filed the complaint against LendUp Loans, LLC. on Sept. 8 in a California federal court, alleging violations of the Consumer Financial Protection Act (CFPA) and the Equal Credit Opportunity Act (ECOA).
The bureau alleges LendUp marketed a loan offer that it did not follow through with.
“LendUp claimed to offer larger loans at lower rates to repeat borrowers who ascend its ‘LendUp Ladder,’” the complaint states. “But many borrowers who reached higher LendUp Ladder levels did not, in fact, receive these promised benefits.”
The complaint states LendUp made these allegedly unfulfilled marketing claims despite a 2016 Bureau Consent Order prohibiting it from making misrepresentations about the benefits of borrowing from LendUp.
LendUp Borrowers Received Higher Interest Rates With Repeat Loans, Class Action Lawsuit Alleges
According to LendUp’s marketing, borrowers who repaid loans on time and took free courses offered through LendUp’s website would earn “points” that would allow them to “climb” to higher on the LendUp Ladder level, where they could access lower interest rates and larger loan amounts, the complaint says.
“In fact, many repeat borrowers who ascended to higher Ladder levels did not receive lower interest rates; they received the same or higher rates compared to their previous loans.”
The bureau is also suing to address LendUp’s alleged failure to provide timely and accurate adverse-action notifications to loan applicants.
The lawsuit is seeking to permanently enjoin LendUp from committing future violations of the CFPA and the Bureau’s 2016 Consent Order, as well as an injunction, disgorgement of profits, a monetary penalty, costs and fees.
Lawsuits brought by the Consumer Financial Protection Bureau can sometimes end in million-dollar settlements.
In December 2020, Nationstar Mortgage agreed to settle an action commenced by the Consumer Financial Protection Bureau for $91 million to resolve allegations surrounding mortgage servicing misconduct and deceptive practices that resulted in financial harm to borrowers.
Did you take a loan from LendUp? Let us know your experience in the comments!
The plaintiff is represented by Cara M. Peterson, Jeffrey Paul Ehrlich and Kara K. Miller of the Consumer Financial Protection Bureau.
The LendUp Loans Class Action Lawsuit is Consumer Financial Protection Bureau v. LendUp Loans, LLC, Case No. 3:21-cv-06945, in the U.S. District Court Northern District of California.
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93 thoughts onLendUp Loans Failed to Fulfill Promise of Better Loan Terms to Repeat Borrowers, New Class Action Lawsuit Alleges
So many loans from Lend up and even climbed the ladder to the top. They never reported my good payments to them. And recently I took out a loan from them and now can’t even repay it, sending me an email that they dont do loans anymore.
Yes include me. He proof
From 2016 to 2021 I paid LendUp a total of $5,134.27 just in loan FEES after taking out a total of $24,650 in loans, with the understanding that I would start receiving higher loan amounts at lower rates. Please ensure I am included in this Class Action Lawsuit against LendUp.
I have been a lendup customer as well. Please add me to the lawsuit.
I was with LENDUP since 2018, never was late. Never got any incentive “Climbing ladder”. Never received a 12 month loan like promised after reaching highest ladder level. I went to pay my loan and renew $400 and it wouldn’t allow me to pay until 3 days later. After I paid, I couldn’t take another loan out. After 2 years, never missing a payment, always on time, they gave no notice to me or others. I was paying down my $400 loan. Not once were my payments reported to credit bureaus as the day they will. All lies. Please contact me to add me in your Class Action.
I had lineup loans for a while . I was told to do the courses on line to achieve more points towards the rewards to get higher loans and it never happened. The maximum loan amount I could reach was $400.00. I started off with the lowest approval amount of $300.00. I was a platinum member there with 5500 points and I was never approved for any higher amount than $400.00. They even offered me 2 loans at the same time with more fees attached.I have loaned over $4000.00 from 2019 to 2020. Paid off the last one March 2020 never I was able to get any amount higher than $400. I paid so much fees for those small loans. I had desperate need to survive and could not do anything. The company used me to make more money in charging more interest to desperate customers like me. Please add me.
Add Easter Dean to the suite I’ll be expecting my portion
Ad me I did it for years or call me for more info 3103100111
Will customers get any of the funds as they are the ones abused by this company or will the government take it all from them
I had about 4 loans and over the years the loans have been sold to other companies and now it says I have like 7. I’m on an income driven repayment plan because I can’t pay $40,000 in debt that I didn’t use! Help me.
I used Lendup for yrs. I never received lower rates for new loan.I repeatedly used their services. Please add me