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January 24, 2011
  • Ohio Valley Bancorp, the FDIC-regulated institution behind Loan Central, had $37 million in advances, promissory notes, and FRB notes from the FRB of Cincinnati on Sept. 30, 2010. In addition, the FHLB has provided them with a $75 million line of credit.  Those advances are secured by about $350,000 in loans. OVBC borrows the money at a weighted-average cost of 3.92
January 20, 2011

Here is an interesting series of statements made a few years ago by a prominent regulator. See if you can guess who it is: Note, the answer is not Elizabeth Warren.

  • Admit that we can’t throw a bunch of lawyers – however talented – into a room and expect that they are going to come up with consumer disclosures that are understandable to most people.
  • I urge that we take a new approach, premised on obtaining input, through consumer testing, to learn what information consumers most want to know about, and how to most effectively convey it to them.
  • The clear and concise labeling of food nutrition content has not only enabled consumers to find products with the nutritional characteristics they’re seeking, it has influenced food producers to develop products that consumers want.  By this measure, the food nutrition disclosures have been effective and useful to consumers, whereas I doubt that we would make a similar statement about many of our current disclosures for consumer financial products.
The CFPB is going to spend a lot of time working to improve disclosures. I don't remember who said it, but it is true: we live in a country where there are more efforts made to protect people from Happy Meals (TM) and children's toys that on most of the products that make up the majority of our financial transactions.
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January 20, 2011

The Department of the Treasury has issued an interim final rule that will govern standards for cards that receive federal payments. The new rule goes into effect on Friday. It implements policies designed by NACHA (the Electronic Payments Association) that govern the federal use of the ACH system.

The new rule may leverage the scale of transactions made by the federal government into creating a higher

January 19, 2011

Jackson Hewitt new television ads have a not-so-subtle message: come to Jackson Hewitt to get a refund anticipation loan.

You don't have to take my word for it. Just watch this advertisement:

January 18, 2011

H&R Block's Emerald Loan has been delayed. A company spokesperson said that the product is still being reviewed to make sure that it meets "regulations."

The Emerald Loan was supposed to be available on January 14th, in time for the new tax season. Block's Emerald

January 13, 2011

Green Dot will manage the US Department of the Treasury's new debit card program, according to an announcement released this morning.

The new account will give Green Dot 600,000 new accounts. Green Dot already has 3.3 million customers for its card.

January 12, 2011

A dedicated Bank Talk reader had the wherewithal to snap a photo of the new marketing placard at a nearby Jackson Hewiitt. Here is a copy of the photo that he sent:

January 10, 2011

The US Department of the Treasury is set to announce the private partners that will roll out its new debit card aimed at unbanked consumers that need a place to deposit their tax refunds.  Under the pilot, Treasury hopes to add more individuals to their Direct Express platform.

The Treasury Department indicated that this plan was in the works last September. The update is that they will

January 5, 2011

Although H&R Block cannot offer refund anticipation loans, they do intend to provide credit to their customers during the upcoming tax season.

Block intends to offer the "Emerald Loan"  in amounts of either $750 or $1,000. The term is 30 days.  The loan fee

January 4, 2011

A wrinkle in the Dodd-Frank bill could quash any recovery in the housing market.

The idea is simple - lenders need to keep some skin in the game. That is the purpose behind the bill's "qualified residential mortgage" rule.  It says that lenders have to hold five percent of the risk for two years.

The problem is that one big bank, Wells Fargo, may succeed in seeing to it that the definition of a risky loan is so

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