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In The Media

Consumer Finance Protection Bureau Fines a YC Company

by Larry Chiang on September 28, 2016

By Larry Chiang 

TechCrunch (@TechCrunch)
“Good guy” loan startup LendUp fined $6.3M for overcharging by @JoshConstine
Enforcement of laws is very political. 
Entrenched payday lenders are incredibly dirty and outspend the CFPB 25:1. For every dollar, Consumer Fin Protection Bureau spends, their opposition spends 25. 
Welcome YC kids to my mentors’ world: #CS183law
It’s a war and being well funded helps you win. But we are small. So, we are going to need to prepare to win against a larger foe. [The foe being the enemy of the for-profit, market leader]
Enforcement of laws is very political. 
When you’re the innovative startup, the entrenched legacy company fight you. 
Travis Kalanik has a CS degree from a top 10, Pac 12 school called University of California Los Angeles. He agrees that CS majors need to engage countermeasure and #CS183law

Read all the random laws and blog. 
I know. You’re an engineer. But you can’t delegate 100% of the law to your SiliconValley law firm. As founder, we have to read the law. 

See Reid Hoffman’s YC app. #cs183c. 

For example, we sell credit cards to college students. That’s about a dozen legally contentious issues right there…
– Card Act
– FCBA. 
– Privacy
– Social security number management 

And these spider off to subtopics. 

Each subtopic deserves its own series of blog posts stating position and rote regurgitations of written law. 

Bust sum balls. 

I guarantee that if you wanna pee in the tall weeds with the big dogs, you’re going to need to lobby. Don’t pee in the lobby. Lobby, as in reach out to legislators and start regurgitating their own laws back to them*.

*Few read. I’ve seen legislators on rules committees be impressed when I quote them back their own co-authored law. 

See “How to get laws passed for $217”. Read the rules. Question authority while adhering to rules. 

I wrote a blog post about FCRA and lax FTC compliance and wore this at New York Fashion Week’s front row. 

FTC disclosure: I financially benefit from being a supermodel with a super credit model. 


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