This week, the Accion U.S. Network submitted a comment paper to the U.S. Department of Treasury in response to their Request for Information on “Expanding Access to Credit through Online Marketplace Lending.” The response focused on the impact of online and marketplace lending on small businesses in the U.S. Increased access to credit for small business owners is good and necessary for small business to continue to thrive and be the backbone of the American economy. However, a lack of transparency around interest rates and fees, and little regulation in the industry have created a dangerous environment for many small business owners, who have become trapped in a cycle of debt.
The response highlights stories of Accion clients who had previously experienced such predatory practices from marketplace lenders. It also includes information about the Small Business Borrowers’ Bill of Rights, which Accion has proudly signed and supports as a step toward greater fairness and transparency in the industry.
Accion was pleased to be a part of this important and timely conversation, and remains eager to assist in developing rules that will help the massive benefits of marketplace lending prevail over the potential for predatory practices.