Tag Archives: payday lending

FDIC Clarifies Scope of Payday Lending Rules

The FDIC today updated its 2005 guidance on payday lending by banks to emphasize that the guidance does not apply to banks providing bank services to payday lenders. The guidance applies to payday loan-style products made directly to consumers by banks. “Financial institutions that can properly manage customer relationships and effectively mitigate risks are neither prohibited nor discouraged from providing ...

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NY Fed Researchers Caution Against Payday Lending Curbs

More research is needed on payday borrower habits before any regulation curbing payday lending is adopted, say researchers at the Federal Reserve Bank of New York. The authors examined criticisms of payday lending that are used to justify reform and said that most did not hold up to scrutiny. Research is split, for instance, on whether payday loans help or ...

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