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2 years ago
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LendUp promised customers that it had no hidden fees. Instead it had undisclosed fees, and now has a $6 million fine from the state of California to show for it

Facepalm

Thanks Google! Evidence of how the huge companies of the world benefit from the regulatory morass that exists in our system. Now 8% of his workforce is dedicated to compliance of regulations. That’s an unseen cost (unseen by everybody but the owners of the company) I have a client who is an investment adviser. Their CFO spends their whole day making sure all of their paperwork is in order for the various regulators out there.

LendUp CEO Sasha Orloff spoke to TechCrunch, admitting his company didn’t have a big enough compliance and legal team to review all of its promotions and features. To remedy the situation, LendUp proactively refunded any wrongly charged customers and ceased all problematic practices as soon as the investigation began. Now, Orloff says his 190-employee company has a 15-person-plus legal and compliance division — more people than the entire LendUp team at the time of the infractions.

3 years ago
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