Four Democratic members of the California state legislature recently sent a letter to the Federal Deposit Insurance Corporation (FDIC) urging the agency to take action against FDIC-supervised banks that partner with non-bank lenders to originate high-cost installment loans.

Two of the letter’s authors, California Senator Monique Limon and Assemblymember Tim Grayson, were also sponsors of

Marketing by nonbanks of products and services offered with bank partners is coming under increasing scrutiny that focuses on the potential for consumers to be led to believe that the nonbank is a bank, or is FDIC insured.  We discuss recent state and federal regulatory and enforcement developments, including the FDIC’s proposed rule addressing false