DFI Licensed Lenders and Payday Lenders Must Be Careful During COVID-19 Crisis

DFI Licensed Lenders and Payday Lenders Must Be Careful During COVID-19 Crisis

On March 18, 2020, the Wisconsin Department of banking institutions (“DFI”) given crisis guidance to licensed lenders and payday lenders cautioning them from increasing customary rates of interest, charges, or any expenses of borrowing as a result to your COVID-19 crisis.

DFI clearly warned that increases will soon be checked closely and that any increases could matter the financial institution to a finding that is adverse. Put simply, such increases as a result to your COVID-19 crisis could be considered “an important failure of the lenders’ character and fitness.”

DFI further warned that willfully engaging in opportunistic and exploitative conduct could bring about the suspension system or revocation for the lender’s license underneath the character and physical physical fitness needs for companies, officers, and directors.

Furthermore, DFI encourages lenders to “reduce your prices and costs as little as functional costs and sound lending practices allow” to ensure that lenders are a solution to assist struggling Wisconsin families and organizations navigate these hard times. Continue reading DFI Licensed Lenders and Payday Lenders Must Be Careful During COVID-19 Crisis