Sasha Orloff, CEO and co-founder of the financial services company LendUp, wrote an op-ed in The Hill detailing his support for new proposed regulations on “payday” lending. The Consumer Financial Protection Bureau (CFPB) proposed a rule that promotes responsible lending and borrowing to vulnerable consumers who are unable to repay short-term and high cost loans.
LendUp would be affected by the CFPB's proposed rule, but they view the rules as necessary restrictions to encourage responsible lending and borrowing. LendUp offers small-dollar, short term loans, but says on its website that it promotes "sustainable" lending practices to avoid trapping consumers in cycles of debt. LendUp says it decreases a customer’s interest rates over time to reward repayment and responsibility, "graduating" borrowers into financial security.