Small-dollar lending

Strike the right balance in regulating small-dollar lending


There are ways to remove bad actors from the industry — such as reinstating the Consumer Financial Protection Bureau’s payday lending rule and banning certain fees and collection practices — without hindering consumers’ access to emergency credit.


CFPB grants safe harbor to Bank of America for small-dollar loans


The agency's "no-action" letter is intended to provide more regulatory certainty for the bank after it announced a short-term credit product available to checking account customers next year.


Bank of America takes on payday lenders


Bank of America plans to offer some of its customers access to short-term loans, the latest blow to the payday lending industry.


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.