All news sources report frequently on a pending federal case ruling that could alter how Peer to Peer (P2P) loans are made and packaged as securitized tranches. The issue revolves around the question of whether P2P providers and their core lenders stand in the shoes of “Banks,” who alone enjoy the protection of Federal laws against state usury statutes.
Regardless of the eventual outcome, portfolio protection is crucial! I recommend immediately deploying a voice ID, “pre-emptive” fraud prevention platform for all customer communications management (CCM). Combined with a high performance, early-out collection system pre-empts and reduces disputes, charge- backs, and write-offs to their lowest possible denomination.
---Mitch