Regulators Set Rules On Short-Term, Small-Dollar Loans

Law360, New York (November 21, 2013, 3:43 PM EST) -- Federal banking regulators on Thursday issued final supervisory guidance for banks issuing deposit advance loans, setting up a framework for them to address potential risks associated with deposit advance loans and supplementing existing guidelines for payday and subprime loans.

The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.'s final guidelines update the proposals issued by the regulators in April, which detailed expectations for OCC and FDIC-supervised institutions that issue deposit advance loans.

The new rules remain largely the same, but the...
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