LendingClub Endorses Small Business Truth in Lending bill introduced in US House and Senate

SAN FRANCISCO, Nov. 18, 2021 /PRNewswire/ --A LendingClub Corporation (NYSE: LC), the parent company of LendingClub Bank, America's leading digital marketplace bank, endorsed a bill introduced today in the United States House and Senate that would extend the transparency standards of the federal Truth in Lending Act to small business financing.
LendingClub Endorses Small Business Truth in Lending bill introduced in US House and Senate
"Small business owners deserve transparent disclosure of the price they would pay for a loan, plain and simple. Chairwoman Velazquez and Senator Menendez have stood up to support small businesses owners and a more transparent, responsible, and potentially innovative small business lending system," said Louis Caditz-Peck, Director of Public Policy at LendingClub.Since 1967, the Truth in Lending Act has established transparent disclosure of the prices and terms for loans to consumers. But the Truth in Lending Act does not apply to most small business financing, and in recent years less-transparent pricing practices have emerged. Research by LendingClub's partner Accion Opportunity Fund has found small businesses paying APRs as high as 358%, often without those rates being clearly disclosed to the small business borrower. The payments charged to the small businesses in the study were, on average, nearly double what the business could afford to pay."We're looking forward to working on this bill with lawmakers on both sides of the aisle to help small businesses recover economically, and to encourage innovation in small business lending. LendingClub has shown that innovation can lower prices, but that only benefits small business customers if they are able to easily compare the prices they are being offered. Truth in Lending standards are not being upheld across the market today, and small businesses are literally paying the price," said Caditz-Peck.
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