Rapid Growth In Online Lending Prompts Information Request From U.S. Treasury

The U.S. Treasury Department (the "Treasury") has issued a Request for Information ("RFI") on online marketplace lending, including peer-to-peer lending ("Online Lending") in the U.S. 80 F.R. 42866-68 (July 20, 2015). The RFI seeks a broad range of information regarding:

• The business models and products offered by online lenders ("Online Lenders") to small businesses and consumers;
• The potential for Online Lenders to expand access to credit to historically underserved market segments; and
• How the financial regulatory framework should evolve to support the safe growth of this industry.

Responses to the RFI are due by August 31, 2015.

Background

Online Lending is growing rapidly, with an estimated $12 billion in new loan originations by all Online Lenders in 2014. In "From the people, for the people," The Economist (May 9, 2015) ("The Economist") stated that the five largest Online Lenders have made more than one million loans and are generating new