LendUp is a financial technology company that provides loans and credit cards, as well as financial education, access to credit reporting and gamification for responsible lending behavior.
LendUp loans to customers that banks usually decline, giving borrowers with poor credit scores access to credit cards and short term loans. Many of the loans offered by the company represent an alternative to payday loans for customers. LendUp has called its customers "the emerging middle class." Its customers generally have credit scores below 680.
LendUp graduated out of the Y Combinator batch of 2012. It has received $325 million in equity and debt financing from Paypal, Kleiner Perkins Caufield & Byers, Google Ventures and Andreessen Horowitz, among others.
In August, 2016 LendUp announced its Series C round of equity, led by Y Combinator.
In September 2016 LendUp was fined by the Consumer Financial Protection Bureau and a California state regulator over widespread violations of payday- and installment-lending laws and agreed to pay over $6 million in penalties and customer repayments. The CFPB found that the company didn't give consumers the opportunity to build credit or access to cheaper loans in certain states, as it had claimed it would.
In March, 2017, LendUp announced it received a $100 million credit facility from Victory Park Capital and surpassed $1 billion in loan originations.
In May 2017, LendUp announced plans to quadruple the number of credit cards available to consumers through its partnership with Beneficial State Bank.
In June 2017, LendUp and the Aspen Institute Financial Security Program launched Finance Forward, alongside Mayor Stephen K Benjamin of Columbia, SC. Finance Forward is a multi-city event series that brings together elected officials, businesses, community advocates and nonprofit leaders to identify and advance actionable solutions to the growing problem of income volatility in the U.S.
In November, 2017, the company announced that former Tesla executive William Donnelly joined as CFO.
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Source of article : Wikipedia
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