Banks Seek Clear Rules While Eyeing Small-Dollar Loan Expansion

Federal regulators want more banks to offer small-dollar loans, but the industry sees a lack of firmer guidance as a barrier to widespread action beyond a few products from large banks.

US Bancorp, Bank of America Corp., Wells Fargo & Co. and four other retail banks in the US have begun issuing, or announced plans to introduce, flat-fee, small-dollar installment loans since 2018, according to the Pew Charitable Trusts Consumer Finance Project. Typically issued between $100 to $1,000, they are meant to help consumers when they run into an unexpected expense and can serve as an alternative to ...