Guidance further supports the need for financial institutions to provide access to loans for the 60 million credit-challenged Americans, while protecting consumers
OppLoans, a leading financial technology platform that powers banks to serve middle income, credit-challenged consumers, applauds the release of the Interagency Lending Principles on small-dollar lending by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Federal Reserve Board and the National Credit Union Administration.
“We believe the newly-released federal regulatory guidance on small-dollar lending represents a major step in the right direction for the 60 million middle-income, credit-challenged consumers who need access to loans but are unable to get them through traditional lenders.
We also applaud the interagency principles, specifically the endorsement of third-party partnerships between banking institutions and technology providers who can provide best-in-class marketing acquisition, customer service and technology to assess risk beyond mere credit scores to facilitate broader small-dollar lending access. This guidance will create more options for the millions of consumers who need access to credit.
Additionally, the inclusion within this guidance of core principles for consumer protection in small-dollar lending – namely the focus on the borrowers’ ability to repay, and for loan payments to amortize principal – amount to common sense ways to go about balancing expanded access with protecting consumers. We see principles such as these as ultimately creating more access thoughtfully through banks and credit unions for the millions of credit-challenged Americans,” states Jared Kaplan, CEO, OppLoans.
OppLoans is a leading financial technology platform that provides accessible products and a top-rated experience to middle income, credit-challenged consumers. Through our unwavering commitment to customer service, we help consumers, who are turned away by traditional providers, build a better financial path. OppLoans has been ranked as an Inc. 500 company for four straight years, listed on the Deloitte’s Technology Fast 500™, and named the fourth fastest-growing Chicagoland company by Crain’s Chicago Business. OppLoans maintains an A+ rating from the BBB. For more information, please visit OppLoans.com.