The Consumer Financial Protection Bureau has announced that it is accepting complaints from consumers encountering problems with loans from online marketplace lenders. The CFPB is also releasing a consumer bulletin that provides an overview of marketplace lending and outlines tips for consumers who are considering taking out loans from these types of lenders.
Millions of consumers take out personal loans online. Marketplace lending—often referred to as “peer-to-peer” or “platform” lending—is a relatively new kind of online lending. A marketplace lender uses an online interface to connect consumers or businesses seeking to borrow money with investors willing to buy or invest in the loan. Generally, the marketplace lending platform handles all underwriting and customer service interactions with the borrower. Once a loan is originated, the company generally makes arrangements to transfer ownership to the investors while it continues to service the loan.
CFPB's full press release and consumer bulletin are here.