The FDIC and OCC issued final guidance on November 21 to state member banks, national banks and savings associations that offer or may consider offering deposit advance products. The Guidance on Supervisory Concerns and Expectations Regarding Deposit Advance Products provides risk management advice and describes supervisory expectations for the operation of deposit advance lending programs, such as repeat usage limits that trigger a cooling off period during which a customer cannot take out a deposit advance.

Nutter Notes: The Federal Reserve declined to join the FDIC and OCC in issuing the guidance. Therefore, the guidance does not apply to state member banks. Instead, the Federal Reserve issued a policy statement in April (when the FDIC and OCC first issued their deposit advance guidance in proposed form) that outlined in general terms the potential risks associated with deposit advance products and warned member banks to provide such credit responsibly.