Removing Barriers Blog

Federal Regulators Encourage Responsible Small-Dollar Lending
Posted March 26, 2020 by CUNA Advocacy

Today, five federal financial regulators (FRB, CFPB, FDIC, NCUA, and OCC) issued a joint statement encouraging financial institutions to offer responsible small-dollar loans to consumers and small businesses in response to COVID-19. NCUA also issued a letter to credit unions on small-dollar lending. 

The agencies stated that such loans should be “offered in a manner that provides fair treatment of consumers, complies with applicable laws and regulations, and is consistent with safe and sound practices.” The statement follows other actions taken by the agencies to encourage financial institutions to meet the financial services needs of their customers and members who have been affected by COVID-19.  

In addition to today’s statement, the agencies are working on future guidance and lending principles for responsible small-dollar loans to facilitate the ability of banks, credit unions, and saving associations to meet the ongoing needs of their customers, members, and communities.