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CFPB Gives Green Light to Bank of America Small-Dollar Loans

Nov. 5, 2020, 11:32 PM

The Consumer Financial Protection Bureau gave its blessing to Bank of America Corp.’s new small-dollar loan product.

Bank of America on Thursday received a no-action letter from the CFPB for its new short-term loans that will allow customers to borrow up to $500 with a flat $5 fee. Customers will be able to repay the loans, which the Charlotte, N.C.-based bank announced in October, in three equal installments over 90 days.

The no-action letter, part of the CFPB’s efforts to encourage innovation, means that Bank of America can offer the new product without facing a supervisory or enforcement ...