U.S. consumers borrow nearly $90 billion every year in short-term, small-dollar loans that range from $300 to $5,000. Because many banks have withdrawn from this market, consumers have increasingly turning to alternative lenders.
Joseph Otting, Comptroller of the Currency, wants banks back in the micro-lending business offering responsible short-term, small-dollar installment loans.
Otting believes banks can offer small-dollar loans with reasonable terms and still make a profit on them. On May 23, the OCC published three core lending principles that banks should consider when offering short-term, small-dollar installment lending products . . .
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