Bulletins

LendUp is liquidating assets, including its neobank

The fintech had previously been ordered by regulators to stop lending.

A piggy bank tips over into a pile of coins

LendUp's neobank won't save it from financial woes and regulatory scrutiny.

Photo: Andre Taissin/Unsplash

A bet on banking doesn't seem to have saved troubled fintech LendUp. Parent company LendUp Global has reportedly begun liquidating assets, including its neobank subsdiary, through an assignment for the benefit of creditors, a quieter alternative to a public bankruptcy.


Fintech Business Weekly reported LendUp's plans Sunday. In December, the CFPB ordered LendUp, a fintech primarily known for its earned wage access product, to cease lending operations after allegedly misleading and deceiving customers. At the time, a spokesperson told Protocol that a neobank also owned by their parent company, Ahead Money, would continue operations.

The company, once considered an exciting investment opportunity by the likes of Andreessen Horowitz and Google Ventures, faced a lengthy regulatory battle from 2016 to the end of 2021. The company first entered into consent orders with regulators in 2016 after allegedly deceiving borrowers about the terms of their loans. Four years later the company was again cited by the CFPB for violating military lending laws.

But when the CFPB sued the company in late 2021, it was the final straw for the agency: LendUp had violated its 2016 consent order, the agency said, continuing “with much of the same illegal and deceptive marketing.”

In announcing the action, CFPB Director Rohit Chopra condemned VCs for investing in the company. “LendUp was backed by some of the biggest names in venture capital,” Chopra said in a statement. “We are shuttering the lending operations of this fintech for repeatedly lying and illegally cheating its customers.”

According to Jason Mikula’s report on Fintech Business Weekly, Kinly has acquired some of Ahead’s customers. When calling a customer service line, Mikula spoke to a representative from Kinly who said Ahead had “rebranded.” Reviews and complaints from customers that they cannot transfer funds appeared on app stores and social media. Protocol was unable to reach a customer service or press representative, and Kinly did not respond to email requests by publication.

LendUp also did not immediately respond to requests for comment.

Latest Bulletins

Some of the most popular reproductive health apps lack strong privacy labels and security practices, according to a report published by Mozilla Wednesday.

Keep Reading Show less

Microsoft has finally broken its silence on a sales figure secret its kept close to its chest for more than half a decade.

Keep Reading Show less

The U.S. Commerce Department has implemented an export control on advanced chip design software that’s necessary to produce next-generation processors, expanding on existing controls that target chipmaking tools with the goal of hampering Chinese efforts to build the most complex chips domestically.

Keep Reading Show less

What was supposed to be a blockbuster crypto merger has morphed into a legal brawl. Galaxy Digital said Monday that it has terminated its $1.2 billion bid to buy BitGo, which it accused of failing to produce “audited financial statements."

Keep Reading Show less

Andreessen Horowitz is betting big on Adam Neumann's return to the real estate startup game.

Keep Reading Show less

Unity rejected AppLovin's offer to buy the company in an all-stock deal valued at $20 billion and instead will move forward with a plan to buy ad tech and monetization software company ironSource, the company said Monday.

Keep Reading Show less

Marqeta shares fell about 25% Thursday after the company revealed a weak outlook and founder Jason Gardner said he would step down.

Keep Reading Show less

Atlantic states may have a head start in the offshore wind game, but California has a plan to catch up — and even surpass — them.

Keep Reading Show less

The Federal Trade Commission has officially begun the long-awaited process of regulating digital data by reining in "surveillance" and lax security in a move that could have sweeping consequences for Big Tech and industries far beyond.

Keep Reading Show less

Meta announced it is expanding end-to-end encryption in Messenger, just days after news broke that the company gave Nebraska law enforcement Messenger chats between a 17-year-old girl and her mother discussing a medical abortion. Meta told Wired the announcement and the Nebraska case are unrelated, however, Meta would not have been able to access the chats if the girl and mother had used end-to-end encryption.

Keep Reading Show less

Coinbase said the SEC is looking into different aspects of the crypto company’s business, including “existing and intended future products,” according to a regulatory filing.

Keep Reading Show less

Microsoft accused its gaming rival Sony of trying to hurt the success of its subscription gaming platform by signing contracts with game developers that prohibit distribution through Xbox Game Pass, according to a new regulatory filing published in Brazil. The news was first reported by gaming outlet VGC on Wednesday.

Keep Reading Show less

Disney is getting ready to introduce an ad-supported Disney+ plan in December and will use that occasion to significantly raise the price of its existing ad-free subscription tier.

Keep Reading Show less

The CFPB said Wednesday that it has imposed a $2.7 million fine on Hello Digit, an app that claims to help users put aside money for rainy days but that the regulator said messed up their finances.

Keep Reading Show less

Facebook gave law enforcement in Nebraska private messages sent between a mother and a 17-year-old girl, who are now facing several charges in the state relating to a medication abortion the girl had. Facebook was served a search warrant, which was obtained by Vice, asking for their private data as part of the state's investigation.

Keep Reading Show less

Video game software company Unity can get bought by AppLovin or merge with ironSource, but it can’t do both.

Keep Reading Show less

Coinbase posted dismal results Tuesday as the crypto powerhouse got slammed by a downturn that “came fast and furious.”

Keep Reading Show less

Over the weekend, the Senate passed the Inflation Reduction Act. The legislation is the largest investment in addressing climate change ever made at the federal level.

Keep Reading Show less

The U.S. has begun cracking down on imported goods from China that may have been made with Uyghur forced labor. That includes solar panels, which have been detained at the border or shipped back to China in recent weeks.

Keep Reading Show less

As pressure mounts on Big Tech to do more to protect the youngest users, Snap is launching a new family center that will allow parents to see who their kids are friends with on Snap and report suspicious accounts.

It’s part of a wave of new kid safety features being launched by tech giants, including Meta and Apple. But Snap has an arguably bigger hill to climb in implementing these features than either of those companies. To get parents of teens to use Snap’s parental controls, first, parents of teens need to actually use Snap.

Keep Reading Show less

North Korean hackers used Tornado Cash, a mixer platform for cryptocurrencies, to launder funds. That's according to the U.S. Treasury Department, which imposed sanctions on the USDC and ETH wallet addresses associated with the protocol Monday.

Keep Reading Show less

Google has filed a new patent infringement lawsuit against Sonos, alleging the violation of four patents. Most of the claims focus on voice assistant functionality; Google alleges that Sonos began violating its patents when Sonos introduced its own voice assistant this summer.

Keep Reading Show less

Twilio disclosed that a cyberattack involving the theft of employee credentials allowed attackers to access data from "a limited number" of customer accounts.

Keep Reading Show less

Block reported second-quarter earnings that just topped analysts’ estimates, but shares fell as investors digested the effect of the macroeconomic environment on the company’s core payments businesses. Bitcoin volume also dragged on total revenue.

Keep Reading Show less

Meta announced Thursday it had banned Cyber Front Z, a pro-Russia troll group that purported to mobilize harassment by supporters of Vladimir Putin's war in Ukraine through a public Telegram channel.

Keep Reading Show less
Bulletins