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They don't spell it out in the press release, but the 2016 settlement included a $3.63 Million fine. https://www.consumerfinance.gov/about-us/newsroom/lendup-en

They don't spell it out in the press release, but the 2016 settlement included a $3.63 Million fine. https://www.consumerfinance.gov/about-us/newsroom/lendup-enforcement-action/ https://www.consumerfinance.gov/about-us/newsroom/lendup-enf... According to Crunchbase, LendUp has $361M in funding. Maybe they thought that a few million here and there is a drop in the bucket, and they stand to lose more if reforming themselves impacts growth. Turns out you have more to worry about than escalating fines.

vmception 5y ago
Yeah, CFPB is one of the newest, or maybe the newest, federal agency. The other consumer protection agencies (FTC) lack teeth. So it is a decent gamble to test the authority. Of course they could just stop the predatory practices, but lets not be crazy here.
veltas 5y ago
It seemed to me like the business is having financial trouble and cannot pay a fine like last time, so has to be penalized in another fashion, maybe I'm misreading it. > The order would also impose a $100,000 civil money penalty based on LendUp’s demonstrated inability to pay.
- dragonwriter 5y ago
  > It seemed to me like the business is having financial trouble They were ordered to pay $1.2 million in fines and restitution for the military lending violations earlier this year, and ordered not to collect (or sell or assign) on a bunch of those illegal loans, plus the new case has them prohibited from making any new loans and from collecting (selling/assigning) on a large share of their remaining outstanding loans. So, yeah, they are having financial problems.