Recommendations for Payday Lending

Purpose This guidance provides details about payday lending, a specific variety of subprime lending, and supplements and clarifies previously given guidance about such programs, such as the July 2003 instructions for Payday Lending. 1 It defines security and soundness and conformity factors for examining and supervising state nonmember organizations which have payday financing programs.

This guidance is necessitated by the risky nature of payday financing in addition to significant development of the product. It defines the FDIC’s objectives for wise risk-management methods for payday financing tasks, specially with regard to levels, money, allowance for lease and loan losings, classifications, and protection of customers. Continua a leggere