Two federal bank regulators, the Federal Deposit Insurance Corporation, or FDIC, plus the workplace associated with Comptroller of this Currency, or OCC, recently asked for opinions on the “Proposed assistance with Deposit Advance Products.” See the complete remark page towards the FDIC right right here and also to the OCC here.

The guts for American Progress applauds the FDIC and OCC’s efforts to look at deposit-advance services and products. A deposit-advance loan is really a loan that is short-term bank clients whom utilize direct deposit to immediately add earnings for their reports. The mortgage will be paid back directly from their next deposit. This system is quite similar to payday advances which are generally speaking produced by nonbank institutions that are financial as check cashers. Continue reading