Consumer Affairs Letters
Statement on Deposit Advance Products
AND COMMUNITY AFFAIRS
|SUBJECT:||Statement on Deposit Advance Products|
The Federal Reserve is issuing the attached policy statement, Statement on Deposit Advance Products, to emphasize to state member banks the significant consumer risks associated with deposit advance products in light of the Consumer Financial Protection Bureauís April 24, 2013 white paper entitled "Payday Loans and Deposit Advance Products: A White Paper of Initial Data Findings."1 State member banks are expected to consider the risks associated with deposit advance products, including potential consumer harm and the potential for elevated compliance risk, when designing and offering such products.
Federal Reserve Banks are asked to distribute this letter and the accompanying guidance to state member banks, as well as to supervisory and examination staff. Questions on the attached guidance should be directed to Carol Evans, Assistant Director, at (202) 452-2051; or Amy Henderson, Managing Counsel, at (202) 452- 3140. In addition, questions may be sent via the Boardís public website.2
Sandra F. Braunstein
Division of Consumer and Community Affairs