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I have been trying to find information as to if there are any efforts in process to make P2P lending services like LendingClub.com and Prosper.com available for use in Ohio, and haven't had much luck. Right now, it looks like Ohio is one of four (boooo!!) states that does not allow participation in these types of investment groups, or even the secondary markets of note trading. Does anyone know if there are any kind of efforts to open up Ohio and make it a participating state in P2P lending? Any help is greatly appreciated!

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I believe the basic answer to your literal question, is "No one knows."1 However, that's not a very useful answer.

My suggestion is that you ask this question of your state legislators and/or regulators. (Unfortunately, I have no idea who that would be.)

I did find this forum post, which does not answer the question, but it has been updated recently and states that Ohio residents can only borrow using p2p lending.


1) This is partially based on this comment, from 1.5 years ago:

Based on my research, it’s not looking real promising for Ohio and some others. I have been tracking Prosper 50 State Progress, states by state, for some time.

Most states could easily approve the secondary market where lenders buy or trade existing notes via FOLIOfn because the platform parallels well understood traditional schemas. Approval of the primary Prosper platform where the securitized notes (loans) are created is another matter. Lenders in a number of states, Ohio and my own included, will need to poke-n-prod their state’s regulators and legislators repeatedly before they are allowed to participate on the ‘new’ Prosper. Wish me luck! You too!

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  • George, thank you for your response! Guess its time for me to start calling my elected officials as well! – user2872 Feb 27 '11 at 16:24

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