CLEVELAND, OH (November 13, 2017) The Federal Reserve Bank of Cleveland has released a new report uncovering the predatory nature of peer-to-peer (P2P) lending services that leave many Americans facing unexpected and dire consequences:
"We find that, on average, borrowers do not use P2P loans to refinance pre-existing loans, credit scores actually go down for years after P2P borrowing, and P2P loans do not go to the markets underserved by the traditional banking system. Overall, P2P loans resemble predatory loans in terms of the segment of the consumer market they serve and their impact on consumers’ finances. Given that P2P lenders are not regulated or supervised for antipredatory laws, lawmakers and regulators may need to revisit their position on online lending marketplaces."
SourceFunding.org is providing the nation's first and only high-quality, low-cost and transparent alternative to these predatory online lenders. We match business owners with financing only from our Responsible Finance Network™ of trusted community banks, credit unions and CDFIs to help them find the right funding from the right source. Our mission: Financial inclusion. Learn more here.