Westlaw News

Payday lenders, FDIC settle lawsuit over Operation Choke Point

Two payday lenders have reached a settlement resolving a lawsuit in District of Columbia federal court accusing federal banking regulators of trying to put members of their industry out of business by pressuring banks to cut off their banking services.

The settlement, disclosed on Wednesday by payday lenders Advance America of South Carolina and Check into Cash of Tennessee, calls for the Federal Deposit Insurance Corp to provide training for bank examiners on its policies on payday lenders and offer a complaint process for businesses who believe they have been improperly denied banking services.

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