Federal Deposit Insurance Corporation

Federal Deposit Insurance Corporation

Each depositor insured to at the least $250,000 per insured bank

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Financial Institution Letters

Directions for Payday Lending

Purpose This guidance provides information regarding payday lending, a certain form of subprime lending, and supplements and clarifies previously released guidance about such programs, such as the July 2003 recommendations for Payday Lending. 1 It describes security and soundness and conformity factors for examining and supervising state nonmember organizations which have payday financing programs.

This guidance is necessitated by the risk that is high of payday lending together with significant development of the product.Continue reading