Date Asian

Federal Deposit Insurance Corporation: Recommendations for Payday Lending

Federal Deposit Insurance Corporation: Recommendations for Payday Lending

Each depositor insured to at the very least $250,000 per insured bank

Purpose This guidance provides details about payday lending, a certain kind of subprime lending, and supplements and clarifies previously granted guidance about such programs, like the July 2003 tips for Payday Lending. 1 It defines security and soundness and conformity factors for examining and supervising state nonmember organizations which have payday financing programs.

This guidance is necessitated by the risk that is high of payday financing together with significant development of the product. It defines the FDIC’s objectives for wise risk-management techniques for payday financing tasks, specially pertaining to levels, money, allowance for lease and loan losings, classifications, and protection of customers. Read More