Throwing its Chicago regional director under the bus, the Federal Deposit Insurance Corporation (FDIC) has disavowed a February 2013 letter in which the director had told an Ohio bank, “It is our view that payday loans are costly, and offer limited utility for consumers, as compared to traditional loan products … Consequently, we have generally found that activities related to payday lending are unacceptable for an insured depository institution.” Critics have charged that the federal government has not been forthright about the extent to which it discouraged banks from providing services to lawful but frowned-on businesses in such lines as payday lending and ammunition sales. [Kevin Funnell, earlier on Operation Choke Point]
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