Expanding information about credit card products, doing a little updating
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”’LendUp”’
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”’LendUp”’ was an American online direct lender. It offered [[payday loans]], installment loans, and credit cards to consumers with low credit scores, using publicly available data to assess creditworthiness. <ref>{{Cite news|last=Kolodny|first=Lora|date=2013-11-12|title=Google Ventures Backs LendUp to Rethink Payday Loans|language=en-US|work=Wall Street Journal|url=https://blogs.wsj.com/venturecapital/2013/11/12/google-ventures-backs-lendup-to-rethink-payday-loans/|access-date=2021-04-20|issn=0099-9660}}</ref><ref name=”Time”>{{Cite news|last=White|first=Martha C.|date=2012-11-16|title=Can a Payday Lending Start-Up Use Facebook to Create a Modern Community Bank?|language=en-US|work=Time|url=https://business.time.com/2012/11/16/can-a-payday-lending-start-up-use-facebook-to-create-a-modern-community-bank/|access-date=2021-04-20|issn=0040-781X}}</ref> The company refered to it customers as “the emerging middle class.”<ref>{{Cite web|url=https://www.bizjournals.com/sanfrancisco/news/2017/03/01/lendup-fintech-subprime-borrowers-jobs-trump.html|title=Exclusive: S.F. fintech raises $100 million for subprime lending|website=www.bizjournals.com|access-date=2018-04-22}}</ref> <ref>{{Cite news|last=Shubber|first=Kaddim|date=September 28, 2016|title=LendUp: playing with people’s lives|work=Financial Times|url=https://www.ft.com/content/309161d9-b547-34e6-aeae-8e119d3e23ae|access-date=April 29, 2021}}</ref> LendUp also issued credit cards in partnership with [[Tom Steyer]]’s [[Beneficial State Bank]].<ref>{{cite web|url=https://techcrunch.com/2017/05/16/lendup-credit-card/|title=LendUp launches a better credit card for people looking to improve their credit|date=2017-05-16|accessdate=2021-12-27|work=[[TechCrunch]]|publisher=[[Yahoo!]]}}</ref><ref>{{cite web|url=https://www.lendup.com/press-releases/5-16-2017|title=LENDUP AND BENEFICIAL STATE BANK ANNOUNCE MAJOR EXPANSION OF CREDIT CARD PARTNERSHIP|date=2017-05-16|publisher=self-published by LendUp}}</ref>
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In 2016, LendUp paid $6.3 million in fines for deceptive practices <ref>{{Cite web|date=2016-09-28|title=Google-funded loan startup to pay $6.3m for ‘deceptive’ practices|url=http://www.theguardian.com/technology/2016/sep/28/lendup-fine-google-payday-loan-deceptive-practices|access-date=2021-04-21|website=the Guardian|language=en}}</ref>and widespread violations of payday and installment loan laws.<ref>{{Cite news|last=Peterson|first=Andrea|date=September 28, 2016|title=Regulators Crack Down on Alphabet-backed Payday Lender|work=The Washington Post|url=https://www.washingtonpost.com/news/the-switch/wp/2016/09/28/regulators-crack-down-on-alphabet-backed-payday-lender/}}</ref><ref name=”WSJ fine”>{{Cite news|url=https://www.wsj.com/articles/fintech-upstart-lendup-fined-by-cfpb-california-regulator-1474993380|title=Lender ordered to pay total $6.3 million over payday-loan and installment-lending violations.|last=Wall Street Journal|date=September 28, 2016}}</ref> <ref name=”LA Times”>{{Cite web|last=Koren|first=James Rufus|date=2016-09-27|title=Google-backed LendUp fined by regulators over payday lending practices|url=https://www.latimes.com/business/la-fi-lendup-cfpb-20160926-snap-story.html|access-date=2020-07-19|website=Los Angeles Times|language=en-US}}</ref> In December 2020, it was sued by the Consumer Financial Protection Bureau for violating the Military Lending Act.<ref>{{Cite web|date=2020-12-04|title=LendUp overcharged military borrowers, CFPB says in lawsuit|url=https://www.americanbanker.com/news/lendup-overcharged-military-borrowers-cfpb-says-in-lawsuit|access-date=2021-04-21|website=American Banker|language=en}}</ref><ref name=”LA Times”>{{Cite web|last=Koren|first=James Rufus|date=2016-09-27|title=Google-backed LendUp fined by regulators over payday lending practices|url=https://www.latimes.com/business/la-fi-lendup-cfpb-20160926-snap-story.html|access-date=2020-07-19|website=Los Angeles Times|language=en-US}}</ref>
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In 2016, LendUp paid $6.3 million in fines for deceptive practices <ref>{{Cite web|date=2016-09-28|title=Google-funded loan startup to pay $6.3m for ‘deceptive’ practices|url=http://www.theguardian.com/technology/2016/sep/28/lendup-fine-google-payday-loan-deceptive-practices|access-date=2021-04-21|website=the Guardian|language=en}}</ref>and widespread violations of payday and installment loan laws.<ref>{{Cite news|last=Peterson|first=Andrea|date=September 28, 2016|title=Regulators Crack Down on Alphabet-backed Payday Lender|work=The Washington Post|url=https://www.washingtonpost.com/news/the-switch/wp/2016/09/28/regulators-crack-down-on-alphabet-backed-payday-lender/}}</ref><ref name=”WSJ fine”>{{Cite news|url=https://www.wsj.com/articles/fintech-upstart-lendup-fined-by-cfpb-california-regulator-1474993380|title=Lender ordered to pay total $6.3 million over payday-loan and installment-lending violations.|last=Wall Street Journal|date=September 28, 2016}}</ref> <ref name=”LA Times”>{{Cite web|last=Koren|first=James Rufus|date=2016-09-27|title=Google-backed LendUp fined by regulators over payday lending practices|url=https://www.latimes.com/business/la-fi-lendup-cfpb-20160926-snap-story.html|access-date=2020-07-19|website=Los Angeles Times|language=en-US}}</ref> In December 2020, it was sued by the Consumer Financial Protection Bureau for violating the Military Lending Act.<ref>{{Cite web|date=2020-12-04|title=LendUp overcharged military borrowers, CFPB says in lawsuit|url=https://www.americanbanker.com/news/lendup-overcharged-military-borrowers-cfpb-says-in-lawsuit|access-date=2021-04-21|website=American Banker|language=en}}</ref><ref name=”LA Times”>{{Cite web|last=Koren|first=James Rufus|date=2016-09-27|title=Google-backed LendUp fined by regulators over payday lending practices|url=https://www.latimes.com/business/la-fi-lendup-cfpb-20160926-snap-story.html|access-date=2020-07-19|website=Los Angeles Times|language=en-US}}</ref>
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LendUp was co-founded by in 2011 by stepbrothers Sasha Orloff and Jake Rosenberg. Prior to founding the company, Orloff worked in consumer credit and in venture capital at Grameen Bank, World Bank and Citi. <ref>{{Cite news|title=Tech’s Hot New Market: The Poor|language=en-us|work=Wired|url=https://www.wired.com/2013/01/techs-hot-new-market-the-poor/|access-date=2021-04-21|issn=1059-1028}}</ref> Rosenberg was an early Yahoo! employee and a platform CTO at [[Zynga]].<ref name=”Time” />
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LendUp was co-founded by in 2011 by stepbrothers Sasha Orloff and Jake Rosenberg. Prior to founding the company, Orloff worked in consumer credit and in venture capital at Grameen Bank, World Bank and Citi. <ref>{{Cite news|title=Tech’s Hot New Market: The Poor|language=en-us|work=Wired|url=https://www.wired.com/2013/01/techs-hot-new-market-the-poor/|access-date=2021-04-21|issn=1059-1028}}</ref> Rosenberg was an early Yahoo! employee and a platform CTO at [[Zynga]].<ref name=”Time” />
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LendUp graduated from incubator [[Y Combinator (company)|Y Combinator]] in 2012. The company positioned itself as a “socially responsible lender”
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LendUp graduated from incubator [[Y Combinator (company)|Y Combinator]] in 2012. The company positioned itself as a “socially responsible lender,” claimed to provide access to financial services for “underbanked“ Americans and claimed to offer lower costs credit and credit-building opportunities. It received $325 million in equity and debt financing from [[PayPal]], [[Kleiner Perkins Caufield & Byers]], [[Google Ventures]], [[Andreessen Horowitz]], [[Alexis Ohanian]], Y Combinator and QED Investors, among others. <ref>{{Cite news|last=Demos|first=Peter Rudegeair and Telis|date=2016-08-23|title=Silicon Valley Lender Raises Nearly $50 Million for Subprime Credit-Card Push|language=en-US|work=Wall Street Journal|url=https://www.wsj.com/articles/silicon-valley-lender-raises-nearly-50-million-for-subprime-credit-card-push-1471884723|access-date=2021-04-21|issn=0099-9660}}</ref> In an article published shortly after the company’s launch, ”Time Magazine” wrote that LendUp “says it’s not like other payday lenders. Yet the fees it charges — a little over $30 to borrow $200 for two weeks — are similar to what its competitors charge.”<ref name=”Time” />
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LendUp partnered with [[Tom Steyer]]’s [[Beneficial State Bank]] to issue credit cards, known as the “L Card”, to people with poor credit. The L Card was an unsecured [[Visa]] credit card with an annual fee in the range of $0-$60 and APR in the range of 19.99% to 29.99%.<ref>{{cite web|url=https://techcrunch.com/2017/05/16/lendup-credit-card/|title=LendUp launches a better credit card for people looking to improve their credit|date=2017-05-16|accessdate=2021-12-27|work=[[TechCrunch]]|publisher=[[Yahoo!]]}}</ref><ref>{{cite web|url=https://www.lendup.com/press-releases/5-16-2017|title=LENDUP AND BENEFICIAL STATE BANK ANNOUNCE MAJOR EXPANSION OF CREDIT CARD PARTNERSHIP|date=2017-05-16|publisher=self-published by LendUp}}</ref>
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In May 2017, LendUp reported that it had made more than 4 million loans totaling more than $1 billion <ref>{{Cite web|last=Thorpe|first=Devin|title=Is It Ethical To Lend To Working People At A 200% Interest Rate?|url=https://www.forbes.com/sites/devinthorpe/2017/10/31/is-it-ethical-to-lend-to-working-people-at-a-200-interest-rate/|access-date=2021-04-21|website=Forbes|language=en}}</ref> and had quadrupled the number of credit cards it made available to consumers. The cards featured longer-than-usual grace periods before late fees kicked in. Interest rates ranged from 21.74% to 31.74% percent on credit lines up to $2,000. The credit card business grew more quickly than the firm’s lending product.<ref name=”Verhage, Julie and Surane, Jennifer”>{{Cite web|url=https://www.bloomberg.com/news/articles/2018-06-21/capital-one-co-founder-is-making-a-bet-on-the-subprime-market|author= Verhage, Julie and Surane, Jennifer|title=Capital One Co-Founder Is Making a Bet on Risky Borrowers|date=June 21, 2018|publisher=Bloomberg Business Journal|access-date=2018-09-16}}</ref>
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In May 2017, LendUp reported that it had made more than 4 million loans totaling more than $1 billion <ref>{{Cite web|last=Thorpe|first=Devin|title=Is It Ethical To Lend To Working People At A 200% Interest Rate?|url=https://www.forbes.com/sites/devinthorpe/2017/10/31/is-it-ethical-to-lend-to-working-people-at-a-200-interest-rate/|access-date=2021-04-21|website=Forbes|language=en}}</ref> and had quadrupled the number of credit cards it made available to consumers. The cards featured longer-than-usual grace periods before late fees kicked in. Interest rates ranged from 21.74% to 31.74% percent on credit lines up to $2,000. The credit card business grew more quickly than the firm’s lending product.<ref name=”Verhage, Julie and Surane, Jennifer”>{{Cite web|url=https://www.bloomberg.com/news/articles/2018-06-21/capital-one-co-founder-is-making-a-bet-on-the-subprime-market|author= Verhage, Julie and Surane, Jennifer|title=Capital One Co-Founder Is Making a Bet on Risky Borrowers|date=June 21, 2018|publisher=Bloomberg Business Journal|access-date=2018-09-16}}</ref>
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In November, 2017, former Tesla executive William Donnelly joined as [[Chief financial officer|CFO]].<ref>{{Cite web|url=https://www.americanbanker.com/news/former-tesla-vp-bill-donnelly-joins-consumer-lending-startup|author=Wack, Kevin|title=Former Tesla VP joins consumer lending startup|date=November 7, 2017|publisher=American Banker|access-date=2018-04-22}}</ref> Nigel Morris, co-founder of Capital One and QED Investors, was named chairman of the board in June 2018, joining board members including QED co-founder Frank Rotman, an early Capital One Financial Corp. executive and Blake Byers of GV and board advisors including Carrie Dolan and Ali Rowghani.<ref name=”Mark Calvey”>{{Cite web|url=https://www.bizjournals.com/sanfrancisco/news/2018/06/21/lendup-board-capital-one-cof-san-francisco-fintec.html|author=Mark Calvey|title=San Francisco fintech LendUp adds star power to boardroom|date=June 21, 2018|publisher=San Francisco Business Times|access-date=}} </ref><ref>{{Cite web|url=https://www.bizjournals.com/sanfrancisco/news/2017/06/28/paypal-lendup-pypl-san-francisco-fintech-subprime.html|author=Mark Calvey|title=LendUp picks up PayPal as investor, Carrie Dolan as adviser|date=June 28, 2017|publisher=San Francisco Business Times|access-date= 2018-09-16}}</ref>
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In November, 2017, former Tesla executive William Donnelly joined as [[Chief financial officer|CFO]].<ref>{{Cite web|url=https://www.americanbanker.com/news/former-tesla-vp-bill-donnelly-joins-consumer-lending-startup|author=Wack, Kevin|title=Former Tesla VP joins consumer lending startup|date=November 7, 2017|publisher=American Banker|access-date=2018-04-22}}</ref> Nigel Morris, co-founder of Capital One and QED Investors, was named chairman of the board in June 2018, joining board members including QED co-founder Frank Rotman, an early Capital One Financial Corp. executive and Blake Byers of GV and board advisors including Carrie Dolan and Ali Rowghani.<ref name=”Mark Calvey”>{{Cite web|url=https://www.bizjournals.com/sanfrancisco/news/2018/06/21/lendup-board-capital-one-cof-san-francisco-fintec.html|author=Mark Calvey|title=San Francisco fintech LendUp adds star power to boardroom|date=June 21, 2018|publisher=San Francisco Business Times|access-date=}} </ref><ref>{{Cite web|url=https://www.bizjournals.com/sanfrancisco/news/2017/06/28/paypal-lendup-pypl-san-francisco-fintech-subprime.html|author=Mark Calvey|title=LendUp picks up PayPal as investor, Carrie Dolan as adviser|date=June 28, 2017|publisher=San Francisco Business Times|access-date= 2018-09-16}}</ref>
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LendUp spun off it’s credit card unit into a new company called Mission Lane in 2019.<ref>{{cite web|url=https://www.fintechfutures.com/2019/01/new-investment-for-lendup-spurs-credit-card-spin-off/|title=New investment for LendUp spurs credit card spin off|date=2019-01-14|accessdate=2021-12-27|work=Fintech Futures|publisher=[[Informa]]}}</ref> Mission Lane’s Visa credit card is issued by Transportation Alliance Bank.<ref>{{cite web|url=https://www.missionlane.com/about|title=About|accessdate=2021-12-27|publisher=self published by Mission Lane}}</ref>
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Orloff was replaced in 2019 by Anu Shultes.<ref>{{Cite web|last=Stone|first=Todd|title=LendUp Gets a Shake-up|url=https://debanked.com/2019/01/lendup-gets-a-shake-up/|access-date=2020-07-21|website=deBanked|language=en-US}}</ref>
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Orloff was replaced in 2019 by Anu Shultes.<ref>{{Cite web|last=Stone|first=Todd|title=LendUp Gets a Shake-up|url=https://debanked.com/2019/01/lendup-gets-a-shake-up/|access-date=2020-07-21|website=deBanked|language=en-US}}</ref>
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In December 2020, LendUp launched Ahead Financials, a digital bank to provide “emerging middle class consumers in the U.S and worldwide with banking and financial health services.”<ref>{{Cite web|title=Digital lender LendUp launches a challenger bank – Tearsheet|url=https://tearsheet.co/online-lenders/digital-lender-lendup-launches-a-challenger-bank/|access-date=2021-08-13|website=tearsheet.co}}</ref> LendUp stopped offering loans to new consumers in July 2021. <ref>{{Cite web|last=Murray|first=Sean|title=LendUp Stops Making New Loans|url=https://debanked.com/2021/07/lendup-stops-making-new-loans/|access-date=2021-08-13|website=deBanked|language=en-US}}</ref>
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In December 2020, LendUp launched Ahead Financials, a digital bank to provide “emerging middle class consumers in the U.S and worldwide with banking and financial health services.”<ref>{{Cite web|title=Digital lender LendUp launches a challenger bank – Tearsheet|url=https://tearsheet.co/online-lenders/digital-lender-lendup-launches-a-challenger-bank/|access-date=2021-08-13|website=tearsheet.co}}</ref> LendUp stopped offering loans to new consumers in July 2021. <ref>{{Cite web|last=Murray|first=Sean|title=LendUp Stops Making New Loans|url=https://debanked.com/2021/07/lendup-stops-making-new-loans/|access-date=2021-08-13|website=deBanked|language=en-US}}</ref>
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