Person-to-Person Lending (PPL): New Regulatory Challenges Could Emerge as the Industry GrowsDIANE Publishing, 2011 - Business & Economics Recently, Internet-based platforms have emerged that allow individuals to lend money to other individuals in what has become known as PPL. These online platforms present a new source of credit for borrowers and a potential investment opportunity for those with capital to lend. Both for-profit and non-profit options exist, allowing for income-generating and philanthropic lending to a variety of groups around the world. This report addresses: (1) how the major PPL platforms operate and how lenders and borrowers use them; (2) the key benefits and risks to borrowers and lenders and the current system for overseeing these risks; and (3) the advantages and disadvantages of the current and alternative regulatory approaches. Illus. A print on demand report. |
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agency annual percentage rate Benefits to Lenders borrower’s borrowers and lenders CFPB representatives codified at 15 compliance consolidated regulatory approach consumer advocacy organizations consumer financial laws Consumer Financial Protection consumer protection corresponding loans credit score current regulatory system disclose Dodd-Frank Act enforcement example FDIC federal consumer financial Federal Reserve filed financial products financial services fund Gramm-Leach-Bliley Act identified industry observers interest rate interviewed investment Kiva's microfinance Kiva’s microfinance partners lender protection loan listings loan requests major for-profit platforms major person-to-person lending March 31 microfinance institutions NASAA nondepository nonprofit platform notes to lenders operations oversight Peer-to-Peer Lending percent person lending person-to person-to-person lending companies person-to-person lending industry person-to-person lending platforms potential products or services prospectus supplements Prosper and LendingClub registered with SEC registration statement regulating person-to-person lending regulatory structure repayments reviewed SEC staff SEC’s securities regulators sell notes Stat third-party U.S. dollars WebBank