OppLoans Applauds Newly-Released Interagency Lending Principles for Banks and Credit Unions Offering Responsible Small-Dollar Loans
Guidance further supports the need for financial institutions to provide access to loans for the 60 million credit-challenged Americans, while protecting consumers
Chicago, May 27, 2020—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.
The full Interagency Lending Principles guidance can be found at this link.
OppLoans is a leading financial technology platform that powers banks to provide accessible credit products and a quality customer experience to middle-income, credit-challenged consumers who are turned away by the traditional system. The banks that OppLoans services adhere to key guiding principles including reporting to all three major credit bureaus, ensuring lending products are affordable, and requiring payments to amortize principal over a reasonable period of time. Additionally, OppLoans deploys an opt-in referral program called Turn Up, where the company checks the market on behalf of the customer for lower cost products from a consortium of sub-36 percent lenders. Only 7 percent of applications receive an offer, meaning 93 percent of borrowers lack credit access in the traditional market.
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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.
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