Customer Finance Monitor
CFPB, Federal Agencies, State Agencies, and Attorneys General
OCC small-dollar financing bulletin: one step of progress but one action right back?
The OCC has granted a bulletin (2018-14) setting forth main financing maxims and policies and methods for short-term, small-dollar installment financing by national banking institutions, federal savings banking institutions, and federal branches and agencies of international banking institutions.
The OCC claimed so it “encourages banking institutions to supply accountable short-term, small-dollar installment loans, typically two to one year in extent with equal amortizing payments, to assist meet with the credit requirements of customers. In issuing the bulletin” The bulletin is intended “to remind banks of this core financing maxims for prudently handling the potential risks related to providing short-term, small-dollar installment lending programs. ”
The bulletin records that in October 2017, the OCC rescinded its assistance with deposit advance items because continued conformity with such guidance “would have exposed banking institutions to possibly inconsistent regulatory way and undue burden because they ready to adhere to the CFPB’s final payday/auto title/high-rate installment loan guideline (Payday guideline). Read more