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Treasury calls for new regulations for online lenders
AZ Central: NEW YORK (AP) -- The Treasury Department called for additional oversight and some increased regulations for the online lending industry on Tuesday, the first time a government agency has weighed in on this quickly growing, but largely unregulated, part of the financial world.
It also comes at a time when the biggest online lending company, LendingClub, is under scrutiny from investors after the company altered a portfolio of sketchy loans in order to sell them to an investor. The scandal forced LendingClub's CEO to resign and its stock to plunge more than 30 percent in two days.
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