The California Department of Business Oversight (DBO) announced an inquiry into the growing marketplace lending industry.
The DBO sent letters seeking data and information from 14 online marketplace lenders operating in California. The inquiry in California follows several federal policymakers—including the US Treasury, Congress and Federal Trade Commission—that have reviewed potential consumer protection concerns related to the growing market segment. In its press release, DBO Commissioner Jan Lynn Owen said that online lenders are filling a need in today’s economy, but that the DBO wants to assess the effectiveness of their regulatory structure as it relates to these lenders. As was the case with the Treasury Department RFI, the DBO sought comments on how marketplace lenders conduct underwriting and verify a borrower’s identity.
Source: Experian Regulatory Roundup