How is Prosper regulated?
Lending and loan servicing activities on the Prosper marketplace are subject to state and federal regulation. Loans originated through the Prosper marketplace are made by WebBank, a Utah-chartered Industrial Bank, which is regulated by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). Prosper Marketplace, Inc., a Delaware corporation, is subject to examination, supervision, and potential regulatory investigations and enforcement actions by state agencies that regulate consumer credit, trade and commerce, and federal agencies, such as the Federal Reserve Board and the Federal Trade Commission, that administer the federal consumer protection laws, trade and commerce.
Lending and loan servicing activities on the Prosper marketplace are subject to state and federal regulation. Loans originated through the Prosper marketplace to California residents are made by Prosper Marketplace CA, Inc., a California corporation, under a California Department of Corporations Finance Lenders License. Loans made to residents of all other states are made by WebBank, a Utah-chartered Industrial Bank, which is regulated by the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). Both Prosper Marketplace CA, Inc., a California corporation, and Prosper Marketplace, Inc., a Delaware corporation,are subject to examination, supervision, and potential regulatory investigations and enforcement actions by state agencies that regulate consumer credit, trade and commerce, and federal agencies, such as the Federal Reserve Board and the Federal Trade Commission, that administer the federal consumer protection laws, trade and commerce. Pros
