http://www.lendacademy.com/policy-code-2-loans-lending-club/Here is Peter's great article on the new lower FICO test batch of loans to select institutions
http://www.orchardplatform.com/rejected-loans-on-lendingclub/Here is a great article from Orchard which besides being an interesting read, supports the great credit demand from these 640-659 FICO applicants.
Does anyone know if there is a maximum interest rate that LC could charge borrowers? I wonder if one day they will offer people with 550 FICO a 40% loan...
Each state has it's own usury laws and compliance requirements. It'd probably be very burdensome.
According to above:
DELAWARE, the legal rate of interest is 5% over the Federal Reserve rate.
So that makes the max rate of a Delaware Corp. about 5.25%?
In Florida (18%?), I've gotten CCs at Home Depot and HH Gregg with 29.99% rates after a 6 month interest free period. Needless to say, I take advantage of some promotional discount, then pay them off.
What I've read online is that the state-level Usury laws were rendered moot by a few Supreme Court cases. They might still apply for credit unions, but not for banks.