The Consumer Financial Protection Bureau ordered FlurishInc. to pay $1.8 million in refunds to more than 50,000 customers and pay apenalty of $1.8 million to the CFPB's civil penalty fund, for failing todeliver promised benefits to its customers.
Flurish, an online San Francisco-based lending company thatoffers single-payment loans and installment loans in 24 states, did not giveconsumers the opportunity to build credit and provide access to cheaper loans,as it claimed to consumers it would. Flurish doesbusiness as LendUp.
The bureau found that the company misled consumers aboutgraduating to lower-priced loans, hid the true cost of credit, reversed pricingwithout consumer knowledge, understated the annual percentage rate and failedto report credit information.
The bureau also directed Flurish to end deceptive loanpractices and unlawful advertisements, and ensure accuracy of pricing.