Consumer Finance Insights
December 14, 2015

California Department of Business Oversight Launches Inquiry Into Online Lending


On December 11, the California Department of Business Oversight (DBO) announced that it had launched an inquiry into the online lending industry, known as “marketplace lending.”  The DBO requested a wide array information from fourteen marketplace lenders, including a five-year trend data about their loan and investor funding programs, and information about their business models and online platforms.  The DBO’s announcement indicated that the goal of the inquiry is to better understand marketplace lending and to determine the industry’s size and scope.  The DBO’s inquiry follows the July 16 announcement by the U.S. Treasury Department that it was requesting information from marketplace lenders regarding their business models and products, as well as requesting input into how the financial regulatory framework should evolve in light of the industry’s growth.  Enforcement Watch will continue to monitor the status of these requests in real time, and others like them that affect Online Lenders and Fintech consumer finance companies.