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LendUp Statement on Consumer Financial Protection Bureau Consent Order, Settlement

Agreement with the California Department of Business Oversight


SAN FRANCISCO, CA, SEPT. 27, 2016: Today, LendUp entered into a consent order with the
Consumer Financial Protection Bureau (CFPB) and a settlement agreement with the California
Department of Business Oversight (DBO). The company released the following statement on
the agreements:
These regulatory actions address legacy issues that mostly date back to our early days as a
company, when we were a seed-stage startup with limited resources and as few as five
employees. In those days we didn't have a fully built out compliance department. We should
have.
We are a different company today, with a compliance team of ten and a separate in-house legal
team of six, including our Head Regulatory Counsel and seasoned General Counsel.
Importantly, those teams are brought in at the beginning of the development lifecycle for every
new product and feature.
We take our commitment to operating in a transparent, compliant and socially responsible way
very seriously, which is why weve fully addressed the issues cited by our regulators, including
discontinuing some services. We have also worked to refund all affected customers.
We are proud of the progress weve made to expand access to credit, lower borrowing costs
and provide credit-building opportunities to our customers.
LendUp has:
Graduated more than 20,000 borrowers to the highest rungs of the LendUp Ladder in more
than 11 states
Saved Californians alone more than $18M in 2016 (and an estimated $40M to date
nationwide)
Delivered over 800,000 free credit education classes; and
Helped LendUp customers improve their credit scores: according to TransUnion data, 66% of
LendUp customers showed a credit score increase more than those in the control group
using similar types of products from other lenders.
We started LendUp because the traditional banking system wasnt working for more than half
of Americans. From day one weve committed ourselves to aligning the success of our
business with the success of our customers. We have always held ourselves to these high
standards, and will continue to do so as we work to expand access to credit, lower borrowing
costs and provide credit-building opportunities to our customers.