69 Wash. & Lee L. Rev. 485 (2012)
Regulating Online Peer-to-Peer Lending in the Aftermath of Dodd-Frank: In Search of an Evolving Regulatory Regime for an Evolving Industry

handle is hein.journals/waslee69 and id is 489 raw text is: Regulating Online Peer-to-Peer
Lending in the Aftermath of
Dodd-Frank: In Search of an
Evolving Regulatory Regime
for an Evolving Industry
Eric C. Chaffee*
Geoffrey C. Rapp**
Abstract
The 2010 Dodd-Frank Wall Street Reform and Consumer
Protection Act called for a government study of the regulatory
options for on-line Peer-to-Peer lending. On-line P2P sites, most
notably for-profit sites Prosper.com and LendingClub.com, offer
individual investors the chance to lend funds to individual
borrowers. The sites promise lower interest rates for borrowers
and high rates of return for investors. In addition to the media
attention such sites have generated, they also raise significant
regulatory concerns on both the state and federal level. The
Government Accountability Office report produced in response to
the Dodd-Frank Act failed to make a strong recommendation
between   two   primary    regulatory  options-a     multi-faceted
regulatory approach in which different federal and state agencies
would exercise authority over different aspects of on-line P2P
lending, or a single-regulator approach, in which a single agency
(most likely the new Consumer Financial Protection Bureau) would
* Associate Professor of Law, Director of Faculty Research, and Chair of
the Project for Law and Business Ethics, University of Dayton School of Law;
J.D., University of Pennsylvania (2002); B.A., The Ohio State University (1999).
I would like to thank Christine Gall, Esq. for support and encouragement while
drafting this Article.
** Harold A. Anderson Professor of Law and Values, University of Toledo
College of Law; J.D., Yale Law School (2001); A.B., Harvard College (1998). Eric
Johnson (Toledo 2012) provided excellent research in support of portions of this
Article.

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