Posted by: Jeff Brownlee
November 1, 2013
US News & World Report
A recent op-ed by Tom Feltner titled, “The Dangers of Online Lending” [Oct. 22], is another attempt by so-called consumer groups to vilify the online lending industry without offering a single, credible alternative for more than 60 million middle-class working Americans struggling to obtain uniform, unsecured, non-bank credit.
Online Lenders Alliance represents legal, licensed online lenders and vendors who abide by 18 federal lending and consumer protection laws and industry-leading best practices designed to ensure consumers are treated fairly. Millions of consumers nationwide rely on our products and use them responsibly.
I do agree with Feltner that federal legislation is needed to keep pace with the increasing consumer demand for online financial services. The bipartisan Consumer Credit Access, Innovation and Modernization Act (HR 1566) would expand access to safe, online loans to all Americans and create a federal framework for online lenders to be regulated and chartered by the federal government. The legislation would provide consumers with access to the loans they need while preserving all current consumer protection laws.
Rather than continuing to write negative letters about the products they dislike, groups like the one led by Feltner should be working to find real alternatives for the millions of consumers struggling to find small, short-term loans to meet their needs.