Online Payday Loans

Truth in Payday Lending

Sheila C. Bair

Category: Quotes — Tuesday, January 23, 2007

“There is a huge demand for small-dollar, unsecured loans, but there are far too few low-cost options available for consumers.”

Federal Deposit Insurance Corporation (FDIC) chairman Sheila C. Bair believes banks should offer low cost alternatives to payday loans…

According to draft guidelines issued by FDIC, there is a demand for affordable small-dollar loans. Consumers turn to payday loans mainly because payday lenders:

  • are accessible
  • provide quick loans

FDIC believes banks can provide the same service at a lower cost. Bair believes FDIC should encourage banks to explore such alternatives:

“It is our obligation as a regulator to encourage those we regulate to create products that are beneficial to both the banks and their customers.”

Sheila C. Bair was sworn in as the 19th Chairman of FDIC in June, 2006, for a five-year term.

Sources:
FDIC Issues Draft Guidelines on Small-Dollar Loans (FDIC)
Affordable Small-Dollar Loan Guidelines (FDIC)

Related Quotes:
John Reich
Sheila C. Bair

FDIC Guidelines for Payday Lending and FDIC Consumer Protection Act (Truth in Lending Act) can be found in our Links section.

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