Federal Reserve Cautions P2P Lending Industry

The Federal Reserve released a report saying that P2P loans resemble predatory loans; the report cautions on the industry’s rapid origination growth and rising defaults; they also say the industry as a whole has the potential to destabilize consumer balance sheets; the research also shows taking out a P2P loan hurts credit scores and credit card balances increase; the report also points to the benefits of taking out a loan as well. Source.

  • Todd Anderson

    Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.