Easing Of The Chokepoint? FDIC Clarifies That Banks Can Offer Services to Non-Bank Payday Lenders

Last week the Federal Deposit Insurance Corporation (FDIC) reissued FIL-14-2005 “Payday Lending Programs: Revised Examination Guidance” and its attachment, “Revised Guidelines for Payday Lending,” to clarify that bankers and others are aware that it does not apply to banks offering products and services, such as deposit accounts and extensions of credit, to non-bank payday lenders.

The letter explains that financial institutions that can properly manage customer relationships and effectively mitigate risks are neither prohibited nor discouraged from providing services to any category [emphasis added] of business customers or individual customer operating in compliance with applicable state and federal laws.

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