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Banks’ foray into small-dollar loans adds stress on payday-lending industry

Banks’ foray into small-dollar loans adds stress on payday-lending industry

Payday loan providers are planning to face a barrage of competition through the big banks.

The OCC previously this week provided banking institutions the light that is green go into the short-term loan market, reversing 5-year-old guidance telling them to keep far from it. The move adds force on a business that’s dealing with threats from the CFPB guideline that could need them to evaluate borrowers’ ability to pay for and critique that its enterprize model is predatory and places customers into financial obligation traps.

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