LendUp, an online alternative to payday loans, has agreed to pay $6.33 million in customer refunds and federal and state fines after misleading borrowers in 2012 and 2013, the Consumer Financial Protection Bureau (CFPB) announced today. LendUp marketed itself as a way for payday borrowers to build their credit and get cheaper loans, but in some cases failed to follow through on those claims, regulators say. The San Francisco-based startup, which to date has raised $111.5 million in venture funding, now bears the dubious honor of being the first financial technology startup to pay a CFPB penalty. AH
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