Yirendai (NYSE:YRD), the publicly traded offshoot of huge P2P lender CreditEase, announced on Tuesday it has been named an inaugural member of the Internet Financial Industry Information Sharing Platform(IFIISP).
According to the company, the IFIISP was launched by China Internet Finance Association (CIFA) and aims to track credit information in the industry. It also enables member companies to cross-examine credit conditions of loan applicants from multiple angels as a way to prevent multiple loans, reducing default rates and business risks, ensure legal compliance, and improve information verification process. Yirendai also revealed 36 member companies in the fields of internet banking and consumer finance the CIFA have been selected to be in a training camp of the information sharing platform and filed trial applications this past spring, while only 17 companies were admitted into the platform at its inauguration as the result.
Meanwhile, Yirendai has been dealing with some legal issues over the past month. As previously reported, the company has at least eight class-action lawsuits filed against it following the enactment of new regulations directed towards the booming online lending industry in China. Crowdfund Insider contributor, Spencer Li, noted the new rules created “panic” in the market. Li explained:
“The unveiling came accompanied with a few policy curveballs that few industry participants were expecting. Titled as the “Interim Guidelines” (indicating there could be more permanent policies few years down the road), certain media has hailed the newborn policies as the strictest ever in the history of online lending. However, not much has changed between the draft and final versions with one major exception: borrowers are now subject to a borrowing limit for loans on a single platform as well as across platforms.”
China News recently declared that Yirendai “rejected the complaints as without merit and the company intends to defend its interest.”