In an effort to prove that payday lenders could be driven out of business and the big banks would fill the niche’ the FDIC tried a two year “Small Loan Program”. The political powers that be had already decided that online lending, short term lending, and payday loans had to go. The claim that these successful American business entities were “predatory” and hurting the people who they served is the mantra implemented to try to crush an entire small dollar loan industry.
Payday lenders pushed back exposing the cronyism and political paybacks between the big banks government agencies like the Consumer Financial Protection Bureau (CFPB) and Federal Deposit Insurance Corp. (FDIC). The banks need government to do its dirty work.
The FDIC Small Loan Program was spawned in an effort to prove the banks can do it better. I have written several times that the citizen who really…
