U.S. Bank Regulator Clamps Down on Payday Loans

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00000198-us-bank-regulator-clamps-down-on-payday-l/

A U.S. bank regulator on Wednesday took aim at “payday loans,” advising banks not to extend short-term loans with loan shark rates to people who had such loans for three months during the previous year.

The move triggered a retreat from the stocks of firms that specialize in payday loans.

The Federal Deposit Insurance Corp. said it revised its guidance to banks to discourage the extension of high-priced loans to people who are chronically short of cash, rather than suffering from an unusual, short-term need. Violators could lose their right to make these lucrative loans.

For this complete story, please visit U.S. Bank Regulator Clamps Down on Payday Loans.

U.S. Bank Regulator Clamps Down on Payday Loans

Unknown Author

Featured Resources

Webinars

RA Compliance Corner: Managing Your Service Providers- Do you really have it all in order?

About