amid reports that earlier this week three US senators wrote to the US Government Accountability Office ( SEC ) requesting an investigation into alternative lending , as well as other alternative lenders . The senators believe that " gaps in understanding " may be growing at the same pace as the industry and “ lack of appropriate regulatory oversight , increases in predatory lending practices and other instances of consumer abuse . There are also risks to the larger banking system that could lead to another financial crisis . ” Therefore , they have asked the GAO to conduct a new report into the industry , examining : structure and structure of current lending portfolios ; risks related to institutional investors ; new relationships that alternative lenders have established with traditional bank lenders to repay their loans ; and to investigate new credit underwriting standards , to see if they are in line with fair lending laws .
Inc.com reports that earlier this week three US senators wrote to the US Government Accountability Office (GAO) requesting an investigation into P2P lenders, as well as other alternative lenders. The senators believe that "gaps in understanding" may be growing at the same pace as the industry and “lack of appropriate regulatory oversight, increases in predatory lending practices and other instances of consumer abuse. There are also risks to the larger banking system that could lead to another financial crisis.” Therefore, they have asked the GAO to conduct a new report into the industry, examining: size and structure of current lending portfolios; risks related to institutional investors; new relationships that alternative lenders have formed with traditional bank lenders to make their loans; and to investigate new credit underwriting standards, to see if they are in line with fair lending laws.