John Zasada, Compliance Consulting Director, Financial Institutions Group

On Dec. 4, 2020, the Consumer Financial Protection Bureau (CFPB) filed a complaint against LendUp Loans, LLC (LendUp), an online lender offering single-payment and installment loans to consumers, for violating the Military Lending Act (MLA).

The complaint alleges since 2016, LendUp made 4,100 loans to MLA-covered borrowers with Military Annual Percentage Rates (MAPRs) greater than 36%. In addition, in violation of the MLA, LendUp required borrowers to sign loan agreements containing arbitration clauses in the case of a dispute. Finally, LendUp failed to provide MLA loan disclosures to borrowers before or at the time the borrower became obligated on the loan. The complaint itself is not a ruling that LendUp violated the MLA.

For more information on the MLA compliance requirements, please contact one of Doeren Mayhew’s regulatory compliance specialists.