CFPB, Federal Agencies, State Agencies, and Attorneys General
OCC lending that is small-dollar: one step of progress but one action straight straight back?
The OCC has released a bulletin (2018-14) establishing forth main financing maxims and policies and techniques for short-term, small-dollar installment lending by nationwide banks, federal cost savings banking institutions, and federal branches and agencies of international banking institutions.
In issuing the bulletin, the OCC reported that it “encourages banking institutions to supply accountable short-term, small-dollar installment loans, typically two to one year in period with equal amortizing repayments, to greatly help meet up with the credit needs of consumers. ” The bulletin is intended “to remind banking institutions of this core financing axioms for prudently handling the potential risks related to providing short-term, small-dollar lending that is installment. ”
The bulletin notes that in October 2017, the OCC rescinded its help with deposit advance items because continued conformity with such guidance “would have subjected banking institutions to possibly inconsistent regulatory direction and undue burden because they ready to conform to the CFPB’s final payday/auto title/high-rate installment loan guideline (Payday Rule). Continue reading Customer Finance Track