The Responsible Business Lending Coalition, a group of nonbank small-business lenders, recently announced a regulatory program designed to bring greater clarity to the industry’s pricing and consumer protections, including:
- The right to transparent pricing and terms
- The right to non-abusive products
- The right to responsible underwriting
- The right to fair treatment from brokers
- The right to inclusive credit access
- The right to fair collection practices
Industry self-regulation is a good way for market leaders to demonstrate self-discipline and is preferable to legislative or regulatory changes because of its flexibility and ability to accommodate evolving market trends.