CFPB Now Accepts Complaints About Marketplace LendersMarch 7, 2016 | By: Sean Murray
The Consumer Financial Protection Bureau wants consumers to voice their complaints about marketplace lenders on their website, according to an announcement made earlier today.
“When consumers shop for a loan online we want them to be informed and to understand what they are signing up for,” said CFPB Director Richard Cordray. “All lenders, from online startups to large banks, must follow consumer financial protection laws. By accepting these consumer complaints, we are giving people a greater voice in these markets and a place to turn to when they encounter problems.”
A consumer guide to marketplace lending published by the CFPB, says “If you consider a marketplace lender as one of your options when shopping for a loan, keep in mind that marketplace lending is a young industry and does not have the same history of government supervision and oversight as banks or credit unions. However, marketplace lenders are required to follow the same state and federal laws as other lenders.”
Consumers can submit complaints in the manner they normally would. For instance if the marketplace lender is a student lender, consumers should choose the “student loan” option.
“The CFPB forwards complaints to the marketplace lender and works to get a response – generally within 15 days,” the CFPB says. “Consumers are given a tracking number after submitting a complaint and can check the status of their complaint by logging on to the CFPB website. The CFPB expects companies to close all but the most complicated complaints within 60 days.”
This new complaint feature applies only to consumer products, but according to a recent report, business lenders are next on the list.Last modified: March 7, 2016
Sean Murray is the founder of deBanked, a 10-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.