Exclusive: NY financial regulator requests details from 28 online lenders-source

Reuters News
Posted: Jun 03, 2016 1:25 PM

(Reuters) - New York state's financial regulator sent a letter to 28 online lenders this week to request information and explain the state's licensing laws, according to a person familiar with the matter and a copy of the letter.

The New York Department of Financial Services sent the letter to San Francisco-based Prosper, the second largest online lender, and Avant, Funding Circle, Upstart among others, according to the person, who was not authorized to publicly discuss the matter. The companies could not be immediately reached for comment.

The May 31 letter requests descriptions of products and services the online lenders made available to New Yorkers, as well as cash flow charts, details about lending types and fees.

(Reporting by Suzanne Barlyn and Michael Erman; Editing by Phil Berlowitz)