Peer to peer lending services in the United States and in some parts of Europe are raking in billions every year. In 2014 alone, U.S. lenders accumulated a total of $5.5 billion in revenue, and many predict that the amount will grow by a considerable margin this year.

1. Information on the
Borrower’s Rights and
Lender’s Responsibilities
in the U.S.
Utah Money Center
9380 S Redwood Rd. West Jordan, Utah 84088
(801) 569-2599

2. Peer to peer lending services in the United States and in some parts of Europe are
raking in billions every year. In 2014 alone, U.S. lenders accumulated a total of $5.5
billion in revenue, and many predict that the amount will grow by a considerable margin
this year.
An Inclination to Borrow from Alternative Providers
As individuals become more inclined to get funding from alternative sources, lending
institutions are enjoying a rise in revenue and an expansion in their market. Lenders
and borrowers, however, must ensure a responsible undertaking of transactions to
maintain smooth operations and high revenues.
The following content summarizes information on the borrower’s rights and lender’s
responsibilities, according to the Federal Trade Commission and the law.

3. Borrower’s Rights
The Federal Trade Commission and the Code of Federal Regulation list the following as
significant points borrowers need to remember before applying for a loan:
• Borrowers must know the cost of borrowing, according to the Federal Truth in
Lending Act. Because the amount is not all there is to the transaction, it is
necessary to disclose other fees, lest the borrower may have problems in paying
them.
• Borrowers may give their permission to the lender to deposit the amount, less the
fee, to their account electronically.
• They may prepay the full amount without penalty.
• A borrower does not have to start repayment until after nine full months of
leaving school or beginning an internship or residency program.
• Their total loan obligation is cancelled in the event of death or permanent
disability.

4. Sources:
• https://www.law.cornell.edu/cfr/text/13/500.211
• https://www.consumer.ftc.gov/articles/0097-payday-loans
• http://www.utahmoneycenter.com/
Lender’s Responsibilities
The Code of Federal Regulation outlines the following as the lender’s responsibilities:
• Lenders should comply with the guidelines and agreements set by and with the
Board.
• They should disclose the total cost of borrowing to their customers.
• They are responsible for administering the loan and making sure the borrower
meets the criteria for approval.
• They need to monitor the borrower’s performance and detect noncompliance on
their part.
• They have to provide information such as financial statements, projected balance
sheets, and income statements, among others.
• They are responsible for issuing notices to both the Board and the borrowers.