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Providers

Need a Credit Card or Auto Loan? Banks Are Making Them Easier to Get

“Credit cards, auto loans and other personal loans are all getting easier to come by, more than a year into a pandemic that spooked lenders and caused them to tighten lending standards significantly. The net share of banks that loosened underwriting standards for credit cards hit a high in roughly the first quarter, according to […]
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Providers

U.S. Senate Votes to Repeal ‘True Lender’ Banking Rule Issued Under Trump

“The U.S. Senate voted on Tuesday to repeal a regulation introduced during former President Donald Trump’s administration that Democrats say allows predatory lenders to skirt state consumer protections. Lawmakers voted 52-47 to repeal the “true lender” rule, marking the first time Democrats have rolled back a Trump-era financial rule using the Congressional Review Act, a […]
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Providers

U.S. Justice Department Probing Kabbage, Fintechs Over PPP Loan Calculations

“The U.S. Department of Justice is investigating whether financial technology companies including Atlanta-based Kabbage Inc may have erred while distributing billions of dollars in pandemic aid to struggling small businesses, three people with knowledge of the matter told Reuters. The investigation, led by the Justice Department’s civil division, is examining whether Kabbage and other fintech […]
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Providers

Banks Resume Risk-taking in Consumer Lending

“After a year of pandemic-induced caution in consumer lending, bankers are starting to reacquaint themselves with risk. Lending standards have not yet recovered from the massive tightening in 2020, and banks remain somewhat hesitant about lending to consumers with lower credit scores. But a recent Federal Reserve survey suggests some normalization in underwriting as vaccinations […]
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Deals

Avant Doubles Down on Digital Banking With Zero Financial Acquisition

“Avant , an online lender that has raised over $600 million in equity, announced today that it has acquired Zero Financial and its neobank brand, Level, to further its mission of becoming a digital bank for the masses. Founded in 2012, Chicago-based Avant started out primarily as an online lender targeting “underserved consumers,” but is […]
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Providers

Apple Card, Underwriter Goldman Sachs Committed No Fair Lending Violations

“New York’s Department of Financial Services on Tuesday said it concluded its investigation of Apple’s AAPL.O credit card and its underwriter Goldman Sachs Group Inc and found no evidence of unlawful discrimination against applicants under the state’s fair lending law. New York launched the investigation in late 2019 after a tech entrepreneur alleged on social […]
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Providers

Credit Cards Slash $99 Billion From Spending Limits During Pandemic

“The notices went out to one cardholder after another, sparking complaints . Big banks were trimming credit limits by hundreds or thousands of dollars as the Covid-19 pandemic spread. None were saying how far it would go. The answer: The 14 lenders that dominate U.S. credit cards slashed $99 billion from their customers’ spending limits […]
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Providers

U.S. Banks’ Loans Drop to Another Record Low as Deposits Surge

“U.S. bank lending fell to a new low this month, Federal Reserve data show, as a cash-rich banking system continues its cautious approach to making new loans, Federal Reserve data show. Total loans and leases dropped to 62.8% of bank deposits in the week ended March 10. Lenders use deposits to fund new credit for […]