The Inspector General of the FDIC recently appeared in front of the Committee on Financial Services on March 16th. The hearing questioned the FDIC’s tactics in “targeting Refund Anticipation Loans through abusive and unfair regulatory practices.”
Chairman Duffy explains, “In an effort to cause the three banks that supervised to exit the RAL business, the FDIC’s Washington office also used ‘strong moral suasion’ in late 2009 and early 2010. The FDIC also used its power to inappropriately reject underwriting plans and pressure field staff to assign lower ratings in safety and soundness examinations for at least two of the institutions.”
The FDIC is now being required to come out with regulations pertaining to the Refund Anticipation Loans. We will of course share those regulations here when they are released.
The Hearing starts at the 17 minute mark! If you have any questions about EPS’ current refund advance programs or have thoughts about the FDIC hearing, send us an email by clicking here.