National Association of Federal Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement in response to the U.S. Treasury’s White Paper on Online Marketplace Lenders released today.
“NAFCU and our members welcome Treasury’s study of this growing market sector in an effort to protect consumers while promoting a competitive marketplace for all financial institutions, including credit unions,” said Hunt. “Treasury’s report largely confirms our concern that there exists an uneven playing field for overregulated credit unions as compared to online marketplace lenders, which are not subject to the same disclosure rules and underwriting standards that apply to traditional lenders. Going forward, we strongly urge Treasury and other financial regulators to promulgate rules that require online market lenders to meet regulatory requirements such as the protections of Truth in Lending Act and underwriting standards for loans.”