As reported in Bloomberg, a group of Democratic Senators has issued a letter to Treasury Secretary Jack Lew and SBA Head Maria Contreras-Sweet asking for clarification on the regulatory oversight of marketplace lenders. The letter, from Sherrod Brown (D-Ohio), Jeanne Shaheen (D-N.H), and Jeff Merkley (D-Ore.) inquires about whether consumers are adequately protected in online lending, and indeed this and other issues are already the scope of Treasury's recent request for information from FinTech companies and marketplace lenders. The Senators professed to be "very interested in ensuring that this market provides credit to small businesses and consumers in a way that prevents abusive practices while expanding economic opportunity," but the letter likely reflects concern about competition with community banks as well.
This article is presented for informational purposes only and is not intended to constitute legal advice.