Fintech platform LendUp Loans has been fined and barred from issuing any new loans for engaging in illegal and deceptive marketing.

US Consumer Financial Protection Bureau (CFPB) has ordered the lender to pay a fine of $100,000, halt making any new loans and stop collecting on certain outstanding ones.

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Oakland, California-based LendUp Loans has agreed to comply with CFPB’s orders to resolve a September 2021 lawsuit.

CFPB director Rohit Chopra said: “LendUp was backed by some of the biggest names in venture capital. We are shuttering the lending operations of this fintech for repeatedly lying and illegally cheating its customers.”

Backed by the likes of Google Ventures, Andreessen Horwitz, Kleiner Perkins, PayPal Holdings, and QED Investors, the fintech offers single-payment and instalment loans to consumers online.

Notably, this is not the first time CFPB has taken action against LendUp. September 2021 lawsuit was filed in response to violations of CFPB’s 2016 order.

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It barred LendUp from misrepresenting the benefits of borrowing from the company. In 2020, CFPB sued LendUp for allegedly violating the Military Lending Act.

This time, LendUp has been fined for failing to comply with fair lending laws by not informing customers why they were denied credit.

The latest lawsuit also alleges that LendUp deceived customers by misrepresenting the benefits of getting a loan from the company.

Recently, the US financial regulators imposed a fine of $200m on JP Morgan Chase for work communication violations.