The Bankwatch

Tracking the consumer evolution of financial services

US GAO report – “Person-to-Person Lending – New Regulatory Challenges Could Emerge as the Industry Grows”

The General Accounting Office (GAO) in the US as requested by the The Dodd-Frank Wall Street Reform and
Consumer Protection Act directed GAO to conduct a study of person-to person lending.

Their report is now released at http://www.gao.gov/products/GAO-11-613

It provides a comprehensive look at how Lending Club and Prosper work, the challenges P2P Lending presents to the regulators who are based on pre-internet business models.

This report addresses
(1) how the major person-to-person lending platforms operate and how lenders and borrowers use them;

(2) the key benefits and risks to borrowers and lenders and the current system for overseeing these risks; and (3) the advantages and disadvantages of the current and alternative regulatory approaches.

Written by Colin Henderson

July 7, 2011 at 14:12

Posted in Uncategorized

%d bloggers like this: