(Image from Wikimedia.org)
Every citizen who pays taxes in the United States should be familiar with the letters F-D-I-C (Federal Deposit Insurance Corporation). It’s not uncommon to see these big bold letters on check stubs and various other types of documents, especially when you’re borrowing money.
What has the FDIC been up to lately
The FDIC is an independent agency of the federal government that oversees quite a few critical aspects in banking, including making certain that banks are in compliance with various consumer protection laws. The Fair Credit Billing Act, the Truth-in-Lending Act and the Fair Debt Collection Practices Act are just three Acts designed to oversee activities being conducted by banks.
A survey conducted by the FDIC back in December 2009 revealed that a staggering 17 million citizens of the United States are without bank accounts, while another 43 million are considered to be “under banked” citizens. Those considered under banked citizens have bank accounts, but they rely heavily upon the financial services of payday loan companies for borrowing money.
In February 2008, they initiated a pilot program called the Small-Dollar Loan Pilot Program that was designed to encourage financial institutions like banks to offer low interest rate loans (36% or less) in excess of $1,000. In the first year of the program there were 16,000 loans awarded to consumers from 31 banks that participated in the program for a total of over $18 million in loans.
How this helps you as a borrower
For beginners, you have one of the largest government agencies in the United States (FDIC) making it possible for low-income personnel to acquire loans. Many of these loans fall under the title of low income personal loans. These are loans that consumers may have no idea it’s made available to them. Borrowing money is a privilege, which consumers should take advantage, of but it’s of no help to you if you’re not familiar with the various types of loans out there for you.
