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Online Lenders Already in Turmoil Facing U.S. Call for Rules

  • Treasury seeks more transparency for borrowers and investors
  • White paper's release follows ouster of LendingClub's CEO
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Is LendingClub a Warning on Peer-to-Peer Lending?

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Marketplace lenders need to be more transparent about their business practices and some should be subject to additional oversight from U.S. regulators, according to a Treasury Department study released as the industry grapples with market turmoil and a scandal involving one of its leading firms.

Companies in the burgeoning industry need to develop a public database for tracking data on their loans, and firms that lend to small businesses in particular should be subject to more federal consumer protection laws, Treasury said in the report released Tuesday.