Funding Circle US leaves the Marketplace Lending Association

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Funding Circle US is believed to have left the Marketplace Lending Association (MLA), a trade body it helped set up in 2016.

The peer-to-peer commercial lender, which founded the MLA together with its peers Prosper and LendingClub, is no longer listed as a member on the organization’s website.

Fundraising Circle spokespersons declined to comment directly on the departure, but said the company continued to support the MLA.

Read more: Funding Circle US expected to benefit from the extension of PPPs

It is understood that the MLA has a strong focus on the consumer credit space, while Funding Circle lends only to businesses.

Funding Circle US joined the Innovative Lending Platform Association (ILPA) in the fourth quarter of 2020, which is purely open to commercial lenders.

Read more: When will the Funding Circle reopen to retail investors?

The platform is also a founding member of the Responsible Business Lending Coalition (RBLC) in the United States and author of the Borrower Bill of Rights, which promotes six fundamental rights for small business owners seeking financing and provides advice on how lenders can enforce these rights.

Read more: Funding Circle to launch more products and continue to offer government guaranteed loans

These include the right to: transparent prices and terms, non-abusive products, responsible underwriting, fair treatment by brokers, inclusive access to credit, and fair collection processes.

This month, the MLA and the Online Lending Policy Institute have merged to form the American Fintech Council. Prosper, LendingClub and Victory Park Capital are among the founding members.

The MP has been contacted for comment.

Read more: Funding Circle turns profitable as loan book hits record £ 4.2bn

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