LendUp
| File:LendUp Corporate Logo.svg | |
| Company type | Private |
|---|---|
| Industry | Consumer finance |
| Founded | 2012 |
| Founders |
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| Defunct | Template:End date and age |
| Headquarters | San Francisco, California |
Area served | Nationwide |
Key people |
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| Products | Payday loans, installment loans |
Number of employees | c. 250 (Q3, 2018) |
| Subsidiaries | Ahead Financials Mission Lane |
| Website | www |
LendUp operated as a U.S.-based online direct lender focused on payday loans, installment loans, and credit card offerings aimed at consumers with limited credit histories. Utilizing publicly accessible information to evaluate borrower risk, the company identified its primary clientele as the “emerging middle class.” Credit cards were issued through a partnership with Tom Steyer's Beneficial State Bank.
Founded in 2011 by Sasha Orloff and Jake Rosenberg, LendUp originated within the Y Combinator accelerator. It branded itself as a "socially responsible lender" with a mission to provide affordable credit and credit-building opportunities to underbanked populations in the United States.
The company secured $325 million through a combination of equity and debt investments from notable backers such as PayPal, Kleiner Perkins Caufield & Byers, Google Ventures, Andreessen Horowitz, Alexis Ohanian, Y Combinator, and QED Investors. Despite its socially conscious positioning, LendUp encountered criticism for imposing fees that were on par with industry competitors.
In 2016, it raised $150 million specifically to expand its credit card offerings. However, regulatory challenges followed, including a $6.3 million penalty related to misleading lending practices and breaches of payday and installment loan regulations. The Consumer Financial Protection Bureau (CFPB) initiated another lawsuit in 2020 citing violations of the Military Lending Act.
Leadership changes occurred in January 2019 when Anu Shultes took over as CEO. Concurrently, LendUp separated its credit card business into a new entity named Mission Lane. By December 2021, after facing allegations involving deceptive marketing tactics and fair lending infractions, the CFPB imposed a $100,000 fine on LendUp and mandated it halt issuing new loans while suspending collection on certain existing debts. The company ceased loan operations in January 2022.
On May 8, 2024, the CFPB announced plans to distribute nearly $40 million to consumers harmed by LendUp’s conduct. As of March 2023, the most recent annual report filed by LendUp dated back to 2020, with outstanding tax liabilities reported at $390,332.
Ahead Financials
LendUp introduced Ahead Financials in December 2020, officially launching the service in May 2021. Within twelve months, Ahead informed users about an upcoming application update.
Although Ahead was said to have been acquired by Kinly, customer support representatives indicated this was more accurately described as a rebranding effort. Reports across social media platforms revealed difficulties with transferring funds and accessing accounts; some customers experienced account closures without prior notification or clear guidance regarding transition procedures. Kinly’s official channels provided no detailed information about these developments.
In May 2023, Greenwood acquired Kinly, merging two prominent Black-owned fintech firms into one entity.
External links
- Pages with broken file links
- San Francisco-based companies
- Privately owned U.S. businesses
- Financial service providers in the United States
- Social finance sector
- Y Combinator alumni
- California companies founded in 2012
- Financial services firms founded in 2012
- U.S. companies established in 2012
- American companies established in 2012
- Companies of the United States by year of establishment
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