The U.S. Treasury Department has filed a request for public comment on the benefits and risks inherent with online lending. The agency is specifically seeking input on the types of business products and business models used by online lenders, how online lending could improve access to credit to underserved market segments, and what is needed to in terms of regulation to support the growth of online lending.

“There is a preposterous myth that the marketplace lending industry is unregulated. The truth is that it is as regulated at the federal and state level as offline consumer and business lending,” said Alan S. Kaplinsky, Chair of the Consumer Financial Services Group at Ballard Spahr. “Just last week, a consortium of major online business lenders agreed to a best practices protocol, which obviates the need for further regulation.”

Related Practices

Bank Regulation and Supervision
Consumer Financial Services
Marketplace Lending
Mortgage Banking