|| Financial Institution Letters
Tips for Payday Lending
Purpose This guidance provides details about payday lending, a certain form of subprime lending, and supplements and clarifies previously given guidance about such programs, like the July 2003 instructions for Payday Lending. 1 It defines security and soundness and conformity factors for examining and state that is supervising organizations which have payday lending programs.
This guidance is necessitated by the risk that is high of payday financing and also the significant development of the product. It defines the FDIC’s objectives for wise risk-management methods for payday financing tasks, specially pertaining to levels, capital, allowance for loan and rent losings, classifications, and security of customers. (suite…)