LendUp Statement on Consumer Financial Protection Bureau Consent Order, Settlement Agreement with the California Department of Business Oversight

SAN FRANCISCO, CA, SEPT. 27, 2016: Today, LendUp entered into a consent order with the Consumer Financial Protection Bureau (CFPB) and a settlement agreement with the California Department of Business Oversight (DBO). The company released the following statement on the agreements:

These regulatory actions address legacy issues that mostly date back to our early days as a company, when we were a seed-stage startup with limited resources and as few as five employees. In those days we didn't have a fully built out compliance department. We should have.

We are a different company today, with a compliance team of ten and a separate in-house legal team of six, including our Head Regulatory Counsel and seasoned General Counsel. Importantly, those teams are brought in at the beginning of the development lifecycle for every new product and feature.

We take our commitment to operating in a transparent, compliant and socially responsible way very seriously, which is why we’ve fully addressed the issues cited by our regulators, including discontinuing some services. We have also worked to refund all affected customers.

We are proud of the progress we’ve made to expand access to credit, lower borrowing costs and provide credit-building opportunities to our customers.

LendUp has:

_• Graduated more than 20,000 borrowers to the highest rungs of the LendUp Ladder in more than 11 states

_• Saved Californians alone more than $18M in 2016 (and an estimated $40M to date nationwide)

_• Delivered over 800,000 free credit education classes; and

_• Helped LendUp customers improve their credit scores: according to TransUnion data, 66% of LendUp customers showed a credit score increase – more than those in the control group using similar types of products from other lenders.

_• We started LendUp because the traditional banking system wasn’t working for more than half of Americans. From day one we’ve committed ourselves to aligning the success of our business with the success of our customers. We have always held ourselves to these high standards, and will continue to do so as we work to expand access to credit, lower borrowing costs and provide credit-building opportunities to our customers.”