Prosper.com , the world's largest peer-to-peer lending marketplace, applauded today's passage of the historic Wall Street Reform and Consumer Protection Act of 2009 (H.B. 4173). In addition to providing critically needed financial regulatory reforms and consumer and investor protections, H.B. 4173 provides for regulatory oversight of the peer-to-peer lending industry by the Consumer Financial Protection Agency (CFPA), thereby providing a holistic regulator ideally suited to protect both lenders and borrowers.
Longtime consumer financial and privacy protection advocate, Congresswoman Jackie Speier of California, authored the peer-to-peer lending clarification reforms included in H.B. 4173, an Act spearheaded by House Financial Services Committee Chairman Barney Frank.
"Once again, Representative Jackie Speier and Chairman Barney Frank are doing the right thing by putting consumers' and investors' interests first," said Chris Larsen, Prosper Chief Executive Officer and Founder of the Coalition for New Credit Models . "In terms of how the Bill relates to peer-to-peer lending, we've always believed that the industry should be regulated as a bank-like sector by a strong, holistic regulator focused on providing robust protections for both lenders and borrowers. The Obama Administration and other leading policy makers have been calling for the nurturing of alternative, transparent, and durable credit markets that will benefit consumers and small businesses; this landmark Bill heeds that call." Prosper, together with the Coalition for New Credit Models, has advocated that America's economic future depends on new and alternative credit models being embraced in the same way green technologies are being nurtured by policy leaders to help solve the energy and environmental crises.