Regulators Push Tighter Standards For Bank Payday Loans

Law360, New York (April 26, 2013, 2:53 PM EDT) -- Federal banking regulators on Thursday said they want banks to determine whether borrowers can afford deposit advance loans before issuing them and take steps to stop borrowers from repeatedly taking them out, which share many characteristics with payday loans.

The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency said in regulatory guidance that while they saw deposit advance loans as meeting a need for small-dollar loans for some bank customers, the two agencies had serious concerns about high fees and potential...
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