Small-dollar lending

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.


Is now the right time for banks to resume small-dollar lending?


Regulators point to traditional financial institutions as well-positioned to meet short-term credit needs during the coronavirus pandemic, but there are still a host of questions about whether the industry should try to compete with high-cost lenders.


Corbat urges caution; Goldman donates masks


Citigroup CEO says it’s a “fine line” between supporting customers and burdening them with debt; Goldman gives away 600,000 N95 masks it had from prior scares.


Regulators back small-dollar loans to help consumers in crisis


The joint statement said examiners will not impede banks’ responsible efforts to offer open lines of credit, closed-installment loans or other products to borrowers dealing with fallout from the pandemic.


Demand for small-dollar loans is likely to spike. Will banks be ready?


Banks typically don't offer loans to cash-strapped consumers, and are poorly positioned to start doing so on an emergency basis — unless the government steps in to help.


When’s the last time a lawmaker needed a small-dollar loan?


Maybe Congress shouldn’t be so quick to change laws without real-world input.


Dear Congress: Do away with the rent-a-bank ruse


Payday lenders have long used bank partnerships and similar means to circumvent state interest rate caps. Lawmakers should stop such practices now.


Far from cheering CRA reform, CDFIs are worried


Community development financial institutions could stand to gain from efforts to modernize the Community Reinvestment Act, but they fear the proposal offered by regulators may end up draining their capital.


Senate Dems urge CFPB watchdog to investigate restitution practices


In a letter to the agency's inspector general, the 15 lawmakers pointed to specific cases where they said the bureau departed from legal standards in deciding not to require restitution.


House Democrats spar over rate cap bill


Moderates on the Financial Services Committee are attempting to block legislation that would extend the 36% interest rate cap on loans to military personnel to all consumers.