The laws and regulations applicable to online unsecured personal loans are the same laws and regulations that would apply to any unsecured personal loan. We cannot provide a comprehensive list that would cover every possible situation, but examples in federal law include everything from Regulation Z to fair lending requirements to regulations under the Military Lending Act. Examples in Illinois law include the Interest Act, Financial Services Development Act, and more.
One recent consent order involving an online consumer lender is the FTC action against Avant LLC, which offers unsecured installment loans for lenders through its website. We have provided a link to the FTC consent order and related resources below.
For resources related to our guidance, please see:
- GoToIBA.com Topic Page — Truth in Lending Act/Regulation Z
- GoToIBA.com Topic Page — Equal Credit Opportunity Act/Regulation B
- GoToIBA.com Topic Page — Military Lending Act
- GoToIBA.com Topic Page — Illinois Interest Act
- Consent Order, FTC v. Avant, LLC (April 15, 2019), FTC Complaint and FTC Press Release