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The Treasury Department announced Tuesday that members of the public will have an additional month to submit comments about the online marketplace lending industry.
August 18 -
The federal government's first broad inquiry into the fast-growing peer-to-peer loan industry raises several important questions, including whether banks will lobby for a clampdown on these lightly regulated competitors.
July 22 -
In a rapidly growing market outside the purview of the Truth in Lending Act or state usury caps, online lenders' rates and fees can be next to impossible to compare.
August 26
The National Association of Federal Credit Unions is calling for stricter regulation of marketplace lending.
The online lenders should be required to comply with the Truth in Lending Act, Kavitha Subramanian, regulatory affairs counsel at the association, said in a
Because peer-to-peer lenders, hedge funds and other alternative lenders are not covered by the consumer protection law, they "are often able to operate more quickly and with fewer compliance costs since they are not required to follow the same disclosure practices and underwriting standards of traditional lenders," Subramanian wrote.
Small-business lenders
A NAFCU spokeswoman declined to comment Monday beyond the letter.
Additionally, the credit union group blamed the Dodd-Frank Act for the shrinking of available credit. The
"The growth of online lenders proves the need for regulators to modernize existing regulations on traditional financial institutions in order to facilitate greater access to credit," Subramanian wrote.
The NAFCU letter was sent in response to
