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Posted On December 24, 2020 In Investigation With 45 Views

OCC offers banking institutions green light to contend with payday loan providers

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OCC offers banking institutions green light to contend with payday loan providers

Any office regarding the Comptroller for the Currency is shaking within the realm of short-term financing by motivating banks to supply high-interest price loans to subprime borrowers as an option to payday loan providers.

In a significant break from past regulators, Comptroller Joseph Otting stated Wednesday which he desires banking institutions to originate loans of $300 to $5,000 to borrowers with FICO ratings of 680 or below, with few other parameters beyond “sound underwriting.” This new OCC directions could open a $90 billion market to institutions that are financial.

“the product is an automobile to help individuals get right back into conventional banking to get them away from high-cost monetary solutions services and products of check-cashing and lending that is payday with a view toward getting them to the conventional of monetary tasks where they could be eligible for credit cards,” Otting said on a meeting call with reporters. (more…)

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