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FDIC Resolves Payday Lender Lawsuit


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FDIC Resolves Payday Lender Lawsuit

For Immediate Release

May 22, 2019

Press Release

Media Contact:
David Barr
(202) 898-6992
dbarr@fdic.gov

FDIC Resolves Payday Lender Lawsuit

The Federal Deposit Insurance Corporation (FDIC) has resolved a lawsuit with Advance America, Cash Advance Centers, Inc.; Check Into Cash, Inc.; and Northstate Check Exchange. Advance America et al. v. Federal Deposit Insurance Corporation et al. (D.D.C.). The lawsuit had alleged terminations of payday lender bank accounts.  In exchange for the plaintiffs agreement to dismiss the lawsuit, the FDIC is issuing: (1) a statement summarizing its longstanding policies and guidance regarding the circumstances in which the FDIC recommends that a financial institution terminate a customers deposit account and reiterating preexisting public guidance to financial institutions about providing banking services and carrying out Bank Secrecy Act obligations; and (2) a cover letter transmitting the statement to the plaintiffs that reiterates prior correspondence from the FDIC Chairman, summarizes applicable FDIC policy, and notes that the FDIC is conducting additional training of its workforce.

Neither the summarizing statement nor the cover letter represents a change in the FDICs policies or guidance, and all of the FDICs existing applicable regulations and guidance documents remain in full force and effect.

Read the Attachment

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public condence in the nations banking system. The FDIC insures deposits at the nations banks and savings associations, 5,406 as of December 31, 2018. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollarsinsured nancial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDICs Public Information Center (877-275-3342 or 703-562-2200). PR-40-2019



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Original article from FDIC Press Releases - Recent Updates updated 5/22/2019