Small-dollar lending

Can small-dollar loans be both profitable and fair?


Regulators are urging banks to offer small-dollar loans again and lifting existing restrictions on nonbank lenders. But the real challenge is making those loans favorable to consumers without losing money.


Consumer lender Oportun hits pause on debt collections


Many of its borrowers have struggled to make payments since the pandemic struck, so it is helping them by suspending debt collections and capping rates on new loans at 36%.


Uncertainty about CFPB has banks leery of small-dollar lending


Trump-appointed regulators gave the industry the green light to offer installment loans during the pandemic. But with concerns that the light could turn red in 2021, bankers remain extra cautious.


CFPB’s (correct) decision to rescind payday limits comes at right time


Consumers now have more control over their own financial decisions and loan options.


The little-noticed power grab in regulators’ small-dollar guidance


An interagency notice meant to encourage lenders to offer small consumer loans also provides federal agencies too much say on what constitutes “reasonable” pricing.


CFPB offers templates for banks, servicers to seek 'no-action' letters


The templates are meant to make it easier to obtain agency approval for small-dollar loan products and to accommodate mortgage servicers that want to provide online loss mitigation options.


Otting's legacy at OCC? It's complicated


The comptroller of the currency, expected to step down Thursday after two and a half years on the job, ruffled feathers and won some fans in pushing through CRA reform, cutting costs and trying to reshape the agency’s examiner culture.


Regulators unite on small-dollar loan principles for banks, credit unions


Four federal agencies offered guidance Wednesday on how to offer products that compete against payday loans without incurring Washington's wrath. The announcement could spark the rebirth of deposit advances, which were regulated out of existence during the Obama administration.


Banks are waiving overdraft fees. Should they be doing more?


Some bankers, economists, policy experts and even Mark Cuban say that creative uses of overdraft programs could be lifelines for consumers and businesses whose finances have been upended by the coronavirus crisis.


Connecticut bank halts small-dollar loan program due to high demand


The $5.9 billion-asset Liberty Bank in Middletown had set aside $5 million to make small-dollar loans to customers affected by the coronavirus pandemic.