YC's Biggest Scandals

CFPB shut LendUp down for repeatedly deceiving sub-prime borrowers. Permanent loan ban. ~$361M wiped.Autopsy Report:Pitched as the ethical alternative to payday lenders, with a 'LendUp Ladder' that promised lower future interest rates for on-time payment. CFPB sued in September 2021, alleging LendUp violated a prior 2016 order, made false claims about the rate-reduction ladder, and broke the Military Lending Act protecting active-duty service members . Settled December 2021. Permanently barred from making new loans. 118,101 consumers misled. Backed by Google Ventures, PayPal, QED, and Alexis Ohanian.DAMAGE: 118,101 consumers misled · $40.5M consumer redress

CFPB shut LendUp down for repeatedly deceiving sub-prime borrowers. Permanent loan ban. ~$361M wiped.

Autopsy Report:

Pitched as the ethical alternative to payday lenders, with a 'LendUp Ladder' that promised lower future interest rates for on-time payment. CFPB sued in September 2021, alleging LendUp violated a prior 2016 order, made false claims about the rate-reduction ladder, and broke the Military Lending Act protecting active-duty service members . Settled December 2021. Permanently barred from making new loans. 118,101 consumers misled. Backed by Google Ventures, PayPal, QED, and Alexis Ohanian.

DAMAGE: 118,101 consumers misled · $40.5M consumer redress