OCC provides banking institutions green light to take on payday loan providers

OCC provides banking institutions green light to take on payday loan providers

Customer teams generally speaking seen deposit advance as predatory; past regulators considered them inconsistent with security and soundness.

While Pew has over over and over repeatedly argued that bank-issued small-dollar loans would be a much better substitute for customers whom require credit and whom presently search for other lenders, other customer advocacy teams reacted adversely to your OCC statement.

“The OCC is changing the 2013 policy by having a brand new, weaker guidance that may lure banks back in the subprime small buck loans,” stated Christopher Peterson, a senior other in the customer Federation of America and a University of Utah legislation teacher. Continue reading “OCC provides banking institutions green light to take on payday loan providers”