Purpose This guidance provides information on payday lending, a certain form of subprime lending, and supplements and clarifies previously released guidance about such programs, like the July 2003 recommendations for Payday Lending. 1 It defines security and soundness and compliance factors for examining and supervising state nonmember organizations which have payday financing programs.
This guidance is necessitated by the risky nature of payday financing as well as the substantial development of this system. It defines the FDIC’s objectives for wise risk-management techniques for payday lending tasks, specially pertaining to levels, money, allowance for loan and rent losings, classifications, and security of consumers. Continue reading “Federal Deposit Insurance Corporation : Each depositor insured to at the least $250,000 per insured bank”