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Payday Lending

Payday lending can provide short-term access to credit, but it often comes with high rates of interest and expensive fees.

A handful of national banks essentially rented out their charters to third party payday lenders. The OCC found a number of abuses in these relationships. Of primary concern was the inability of small banks to properly oversee the third parties who were making loans in their names. Among the abuses: deceptive marketing practices, failure to secure confidential customer files, and unsafe and unsound lending. The OCC took a series of enforcement actions that eliminated these relationships from the national banking system.


Related News and Issuances

DateIDTitle
02/15/2024 OCC 2024-6 Real Estate Appraisals and Evaluations: FFIEC Statement on Examination Principles Related to Valuation Discrimination and Bias in Residential Lending
10/28/2021 OCC 2021-51 Truth in Lending Act: Revised Interagency Examination Procedures and Rescissions
06/29/2020 OCC 2020-65 Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices: New Comptroller's Handbook Booklet and Rescissions