At least two nationally chartered banks are offering their own version of payday loans, with high fees and short-term balloon payments similar to those that cause the typical payday borrower to become trapped in long-term debt.
Because the entire loan must be repaid in short order, borrowers are likely to have difficulty both retiring the loan and meeting their other obligations. As a result, these borrowers—like the typical customer of payday loan stores—will likely take out a series of back-to-back loans, staying indebted for a significant portion of the year.
The Office of the Comptroller of the Currency (OCC) is responsible for regulating these banks, and has so far failed to stop the predatory practice, making more Americans vulnerable to predatory short-term debt traps as it spreads.
Search Payday Lending - Policy & Legislation - Regulators
Browse Payday Lending - Policy & Legislation - Regulators
- Letter to Federal Regulators: Stop Illegal Payday Loans
Published: Oct 28 2013 Issue: Payday Loans
The National Consumer Law Center, Consumer Federation of America, Center for Responsible Lending and 26 other consumer and civil rights groups sent a letter to federal regulators urging stronger...
- Comments to Department of Defense: Expanding Credit Protections for Service Members and Their Families
Published: Aug 1 2013 Issue: Overdraft Loans, Payday Loans
Although the Military Lending Act has resulted in significant improvements, Service members continue to be the target of predatory lenders. In 2012, members of the military filed 61,642 complaints...
- Advocates Support Proposed Restrictions on Bank Payday Lending
Published: May 30 2013 Issue: Bank Payday Loans, Payday Loans
CRL and allies urge the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to implement and strengthen their proposed guidance to restrict "deposit...
- All Federal Credit Unions Should Shun Payday Lending
Published: May 16 2013 Issue: Bank Payday Loans, Payday Loans
- Renewed Call for Federal Action Against Bank Payday Loans
Published: Mar 13 2013 Issue: Bank Payday Loans, Payday Loans
Federal regulators should take immediate action to stop unaffordable, high-cost payday lending by banks. That is the key message from more than 260 groups and individuals in a letter to the heads...