Google-funded loan startup to pay $6.3m for 'deceptive' practices

Experts say the LendUp case is significant for firms in the emerging online 'fintech' sector that claim to offer a better alternative to payday loans

A Google-funded lending startup will have to pay $6.3m in fines and refunds for a number of "deceptive" practices, signaling the US government's interest in regulating the growing industry of online alternatives to traditional payday loans.

LendUp - a San Francisco firm that claims to offer a "secure, convenient way to get the money you need, fast" - misled customers, hid its true credit costs, and reversed pricing without disclosing it to consumers, according to the Consumer Financial Protection Bureau (CFPB).