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FDIC Clarifies Bank Offering Products to Non-Bank Payday Lenders

November 17, 2015 / Source: FDIC

Highlights:

  • The ​2005 Payday Lending Guidance estabishes the FDIC's expctatios for prudent risk-management practices, both safety and soundness and consumer protection, for banks manking payday loans directly or through third parties.
  • The 2005 Payday Lending Guidance has been updated to enssure that bankers and others are aware that it does not apply to banks offering products and services such as deposit account and extension of credit, to non-bank payday lenders
  • The clarification is reflected in the General Examination Procedures section of the 2005 guidance, which may be found here.
  • The revised FIL-14-2005 may be accessed here.