Online Lending

As the internet becomes the most common medium for executing every manner of "transaction" from buying to dating to watching your favorite sitcom, the subject of online lending has also become a hot topic. Through the web, peer to peer online lending has enabled lenders and borrowers to communicate directly, thus cutting out the need for traditional intermediaries, such as banks or credit unions. But recently, many of the most popular peer-to-peer lending sites have come under scrutiny from the S.E.C.

In October, the S.E.C. sent a cease and desist letter characterizing a popular online lending site as a seller of investments and requiring the site to register with the S.E.C. The site has stopped all new online lending until the registration process is complete. How this will impact other peer-to-peer lending sites remains to be seen. For more information please contact us.