Avant Preps for CFPB Oversight
Avant Inc. is proactively preparing for regulatory oversight from the Consumer Financial Protection Bureau, following the marketplace lender’s launch of its auto refinance product. “From the beginning, Avant’s auto product and supporting processes have been designed with a similar mandate as provided by regulators such as the CFPB,” said Olga Dolchenko, Avant’s head of auto lending.
The company launched an auto refinance product in late March, and plans to reach $100 million of volume by yearend. That volume could qualify Avant as a “larger participant” as defined by the CFPB, and bring the company under regulatory oversight that currently does not exist for marketplace lenders. To prepare,
Avant has already met with the CFPB, said Adam Hughes, Avant’s chief executive. “We’ve taken the approach of being very proactive with the CFPB and other regulators,” he said. “We say, ‘We’re extremely customer-first in what we’re doing, and extremely transparent with our product. Give us feedback.’”
Avant’s Dolchenko will participate in a panel discussion at the upcoming Auto Finance Risk & Compliance Summit next week. To learn more, or to register, click here.
