WASHINGTON—The Pew Charitable Trusts praised today’s announcement by the Federal Deposit Insurance Corporation (FDIC) that the agency is seeking comment on the possibility of banks offering small installment loans.
Nick Bourke, director of Pew’s consumer finance project, issued the following statement:
“For far too long, struggling households have been turned down for loans by banks and instead have turned to high-cost credit such as payday loans. The FDIC clearly recognizes this problem and would be taking a step in the right direction by enabling banks to offer affordable small installment loans—which could help millions of borrowers save billions of dollars annually. The FDIC is one step closer to making that a reality.”
More information on standards that Pew has developed for banks and credit unions to use in making safe small-dollar installment loans can be found here.
The Pew Charitable Trusts is driven by the power of knowledge to solve today’s most challenging problems. Learn more at www.pewtrusts.org.