Payday Lending

Payday lending can provide short-term access to credit, but it often comes with high rates of interest and expensive fees.

A handful of national banks essentially rented out their charters to third party payday lenders. The OCC found a number of abuses in these relationships. Of primary concern was the inability of small banks to properly oversee the third parties who were making loans in their names. Among the abuses: deceptive marketing practices, failure to secure confidential customer files, and unsafe and unsound lending. The OCC took a series of enforcement actions that eliminated these relationships from the national banking system.

Date	Issuance
01/31/2003	Peoples National Bank to Pay $175,000 Civil Money Penalty and End Payday Lending Relationship with Advance America News Release 2003-06 \| Consent Order - Peoples National Bank \| Consent Order - Advance America
01/21/2003	OCC Concludes Case Against First National Bank in Brookings Involving Payday Lending, Unsafe Merchant Processing, and Deceptive Marketing of Credit Cards Release 2003-03 \| Consent Order

Related News and Issuances

Date	ID	Title
12/03/2024	OCC 2024-33	Unfair or Deceptive Acts or Practices and Unfair, Deceptive, or Abusive Acts or Practices: Updated Comptroller’s Handbook Booklet and Rescissions
03/13/2024	OCC 2024-8	Real Estate Appraisals: Temporary Exceptions to Appraisal Requirements in Areas Affected by Hawaii Wildfires
02/15/2024	OCC 2024-6	Real Estate Appraisals and Evaluations: FFIEC Statement on Examination Principles Related to Valuation Discrimination and Bias in Residential Lending