Under Pressure, Banks Exit Deposit Advance Business

Law360, New York (January 17, 2014, 11:00 AM EST) -- Wells Fargo & Co., U.S. Bancorp and Fifth Third Bancorp on Friday announced they would stop offering deposit advance loans, meaning that all major banks have exited the market for small-dollar, short-term loans under pressure from regulators.

The announcements from the banks come as the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau turn up the heat on banks that offer deposit advance loan products, and just days after Regions Financial Corp. said it would discontinue...
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