Here is the No Action Letter by the CFPB Regarding Upstart’s Request

The Consumer Financial Protection Bureau (CFPB) has issued its first no action letter to online letter Upstart. At the time of the request by Upstart, the online lender had facilitated over 80,000 loans totaling over $1 billion ranging from $1,000 to $50,000 with a term of either 36 months or 60 months. The average borrower was just 28 years old. Upstart’s loan program is able to offer credit to parts of the population with limited credit or work history at better interest rates. The request for no action regarded how the credit decisions were being made which differ from the traditional bank lending process. The CFPB, in issuing a no action letter, green-lighted the origination process for Upstart but did not extend the approval to other online lenders. The CFPB said it has no intention of any enforcement nor supervisory action at this time. Both the No Action Letter and the Upstart Request, is embedded below.

 






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