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

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

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

In a significant break from previous 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.” The newest OCC directions could start a $90 billion market to institutions that are financial. Continue reading OCC provides banking institutions green light to contend with payday loan providers