BofA Debuts Small-Dollar Loans in Threat to Payday Lenders

Bank of America Corp. plans to offer some of its customers access to short-term loans, the latest blow to the payday-lending industry.

Customers who have had checking accounts for more than a year can apply to borrow as much as $500 for a flat $5 fee, the Charlotte, North Carolina-based lender said Thursday in a statement. The bank will require that the advance, available in increments of $100, be paid back in three equal installments over 90 days.

“Customers have told us they have that need for liquidity,” Kevin Condon, senior vice president for consumer-deposit and small-business products at Bank ...