Richard P. Eckman, chairman of Pepper's Financial Services Practice Group, was quoted in the December 18, 2014 American Banker article, "Why Lending Club Relies on a Bank You've Never Heard Of."
The court system presents another potential challenge for companies like Lending Club. "Unfortunately the case law is not very robust in terms of providing guideposts," said Richard Eckman, a partner at Pepper Hamilton LLP.
In an analysis published on Pepper Hamilton's website last week, Eckman wrote that two recent court decisions reached different conclusions about the standards for determining whether a bank is the true lender. Though neither case involved marketplace lending, Eckman concluded that the mixed court record clouds the industry's future.