This summer the FDIC issued a report documenting the first year of loan activity under its Small Dollar Loan Pilot Program. Despite the FDIC's public relations posturing within the report, the actual data demonstrates a program that is destined for failure.

Further, the report highlights the extreme challenges that banks are bound to encounter as part of any effort to service a market segment that desires access to small-dollar, short-term loans; a segment that financial service centers, traditionally recognized as check cashers, are already successfully and satisfactorily serving by offering payday loans and other financial services.

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