Well, this is interesting! Another association in the lending industry. Let’s see how they “get along” with the CFPB, OLA, CFSA, FISCA…
Marketplace Lending Association Launched.
Leading online credit marketplaces Funding Circle, Lending Club (NYSE:LC) and Prosper Marketplace announced the launch of the Marketplace Lending Association (MLA), a U.S. non-profit membership organization created to promote responsible business practices and sound public policy to benefit borrowers and investors.
“The MLA represents the marketplace lending industry. Our goal is to promote a transparent, efficient, and customer-friendly financial system by supporting the responsible growth of marketplace lending, fostering innovation in financial technology, and encouraging sound public policy.”
- Ensure, in cooperation with any originating bank if applicable, that all loans offered through the marketplace are made with high confidence that the borrower can repay their entire debt burden without defaulting or re‐borrowing.
- Do not issue payday or high‐cost installment loans, as defined by CFPB, through the marketplace.
- To prevent debt‐traps, extend new credit, in cooperation with any originating bank if applicable, to a borrower who is unable to make their payments due to the marketplace only if due diligence indicates that the borrower’s situation has changed, enabling them to repay their outstanding and new debts.
- Report loan repayment information to major credit bureaus and ensure that the borrower’s credit data is consulted in the loan underwriting process.