LendUp, an online lender that promised friendlier alternatives to high-cost payday loans, will pay $6.33 million in refunds and fines for violating consumer finance laws.
LendUp, which operates in 24 states, will refund $1.83 million to more than 50,000 borrowers as part of the federal settlement, the Consumer Financial Protection Bureau announced Tuesday. In addition, LendUp will refund California customers $1.62 million as part of a separate settlement with the California Department of Business Oversight.
The company will also pay $1.8 million and $1.06 million to the federal bureau and California department, respectively, to cover penalties and other costs.
The San Francisco-based lender is part of a wave of tech companies that promote a less toxic form of payday loans.
Traditional payday loans don’t require credit checks, but do carry...