What the End of Deposit Advance Loans Means for Banks, Consumers

Wells Fargo, U.S. Bank, Regions and Fifth Third have all dropped out of the deposit advance business after federal regulators imposed new restrictions on the products, which are similar to payday loans. American Banker editors discuss the implications for banks, for the nonbank payday lenders who are facing regulation from other entities, and from the customers who may look elsewhere for alternative sources of short-term credit.