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CFPB seeks consumer input on online loan marketplaces

By Mark Iandolo | Mar 9, 2016

WASHINGTON (Legal Newsline) – The Consumer Financial Protection Bureau (CFPB) announced that it is accepting consumer complaints from those dealing with online loan problems.

CFPB also released guidelines that give consumers an overview of the online lender marketplace, providing tips and strategies for navigating the market.

“When consumers shop for a loan online we want them to be informed and to understand what they are signing up for,” CFPB Director Richard Cordray said. “All lenders, from online startups to large banks, must follow consumer financial protection laws. By accepting these consumer complaints, we are giving people a greater voice in these markets and a place to turn to when they encounter problems.”

Millions of consumers pursue online loan options. Marketplace lending is a newer form of online lending. These marketplaces connect consumers and businesses to investors through an online interface and usually handle all underwriting and customer service interactions. After transactions, the marketplace will make an arrangement to transfer ownership to investors while still servicing the loan.

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