Consumer lender Aura Financial ceases operations – American Banker

Consumer lender Aura Financial Corp. has ceased operations due to financing challenges as its clients face economic hardships caused by the COVID-19 pandemic, American Banker reported Jan. 11, citing two sources familiar with the situation.

While the company did not respond to the news outlet's requests for comment, co-founder James Gutierrez talked about the shutdown in a LinkedIn post, saying that uncertainty brought about by the pandemic "intimidated investors."

The San Francisco-based company's website shows that servicing of Aura's client accounts has been transferred to Systems & Services Technologies Inc.

In August 2020, Gutierrez stepped down as Aura's CEO to pursue independent financing for the company, which is focused on Latino borrowers.

Gutierrez, who had also founded Oportun Financial Corp., said he is considering pursuing another venture that would cater to the same demographic group as his previous two companies, American Banker noted, citing a recent interview.