Payday Loans Summary

Payday lending presents insured depository institutions with significant risks. To be successful in payday lending, depository institutions must adequately identify, measure, monitor, and control the attendant risks. Depository institutions also must ensure that adequate management expertise and the appropriate level of capitalization are available, as well as programs that ensure compliance with consumer protection laws. Conversely, deficiencies in assessing and controlling the risks of payday lending can have serious consequences. Such deficiencies have surfaced at a number of insured institutions.

source: fdic.gov

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