New Crypto Lending Organization Calls for Consumer Education and Protections

 NEW YORK, April 7, 2022 /PRNewswire/ --  A new non-profit organization, the Digital Asset Advocacy Group (DAAG), was recently launched to educate consumers on the opportunities and risks associated with digital currency lending. With the recent growth of crypto lending, more consumers are realizing a newfound financial freedom thanks to the benefits of blockchain technology and decentralized financial protocols.

"Crypto lending creates tremendous opportunities. This new industry generates jobs and reduces financial costs for businesses, but it also more importantly provides access to capital for individuals in underbanked communities and helps establish a new pool of investment opportunities for all participants," said DAAG member and personal finance expert, Laura Adams.

Consumers unable to secure a traditional loan because of a bank's minimum deposit requirement, fees, or a low credit score now have options available to them through crypto lending. Research illustrates the need for alternatives in the lending space:

• Over 6% of U.S. households, or a total 14.1 million American adults, are unbanked, according to the Federal Deposit Insurance Corporation (FDIC).
• According to data from the Consumer Financial Protection Bureau, 45 million American adults are considered "credit invisible," meaning they either have no credit score or thin credit files without enough information to create a credit score.

While the benefits of crypto lending are clear, consumers must also be aware of risks and ways to protect themselves as they navigate a burgeoning new industry.

"Sadly, any bad actor or predatory practice from a company operating within the crypto-lending space has the opportunity to do much harm — not just to individuals but to the industry as a whole," said Adams.

Like with traditional lending done through banks and other institutions, all crypto loan consumers should expect the following:

• The ability to review the terms and conditions of a loan agreement in a complete and easy-to-understand written format.
• Receipt of adequate notice before a crypto lender modifies terms and conditions, suspends services, or liquidates any portion of consumers' collateral.
• The ability to contact a crypto lender's customer service and receive a response in a timely manner.
• Proper disclosures from the crypto lender, including whether it is licensed by proper regulatory authorities and ownership status of the crypto collateral.
• Protections from unconscionable contract terms.

"Through more consumer education and by holding crypto-lending platforms accountable to existing protections and safe-lending practices, we can encourage innovation, keep consumers safe and ensure more have access to the opportunities created by such an exciting new industry," said Adams.

About DAAG
Digital Asset Advocacy Group (DAAG) is a non-profit organization that promotes safe and regulated digital currency lending, depository, and other consumer financial practices. DAAG will accomplish its mission through raising awareness on current harmful trends, developing and promoting industry standards with a focus on protecting consumers and businesses, educating the public on the digital currency industry as a whole, and advocating for digital currency stakeholders, consumers and regulators to advance a more secure and ethical emerging market.

Learn more at digitalassetadvocacy.org and connect on Twitter at @DigiAssetAdv.

Contact: [email protected]

SOURCE Digital Asset Advocacy Group