LendUp, an online lender aimed at credit-challenged customers, is reportedly shutting down after 9 years. A message posted to the company’s website last week said it’s not offering loans to new customers, and a banner on its homepage directs potential customers to banking products from its subsidiary, Ahead Financials.

Why should we care?
Oakland, California-based LendUp preached language of financial inclusion for customers left out of the traditional credit system, but the company was critiqued for similar reasons to payday lenders: high APRs and the potential for its clients to fall into debt traps. The company also had difficulties with state and federal regulators, including for violations of the Military Lending Act. It’s not yet clear what caused the company to stop making loans, but industry observers suggest LendUp – despite achieving “profitable growth” – was being crowded out by others in the industry operating similar businesses like OppLoans, as well as challenger banks catering to similar demographics. Though the message indicating that the company is no longer lending is now not on LendUp’s homepage, when clicking on the “Apply Now” link, an automatic popup response reads “We are not offering loans to new customers.”