Dodd Frank Act - Title XII: Improving Access to Mainstream Financial Institutions
The purpose of this title is to encourage initiatives for financial products and services that are appropriate and accessible for millions of Americans who are not fully incorporated into the financial mainstream.
Expanded Access to Mainstream Financial Institutions
The Secretary is authorized to establish a multiyear program of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings to promote initiatives designed:
- to enable low- and moderate-income individuals to establish one or more accounts in a federally insured depository institution that are appropriate to meet the financial needs of such individuals
- to improve access to the provision of accounts, on reasonable terms, for low- and moderate-income individuals.
Program Activities
Subject to regulations prescribed by the Secretary, an eligible entity may, in participating in
a program, offer or provide to low- and moderate-income individuals products and services relating to accounts, including,
- small-dollar value loans; and
- financial education and counseling relating to conducting transactions in and managing accounts.
Low-cost Alternatives to Small Dollar Loans
The Secretary is authorized to establish multiyear demonstration programs by means of grants, cooperative agreements, financial agency agreements, and similar contracts or undertakings, with eligible entities to provide low-cost, small loans to consumers that will provide alternatives to more costly small dollar loans.
Loans under this section shall be made on terms and conditions, and pursuant to lending practices, that are reasonable for consumers.
Financial Literacy and Education Opportunities
Each eligible entity awarded a grant under this section shall promote and take appropriate steps to ensure the provision of financial literacy and education opportunities, such as relevant counseling services, educational courses, or wealth building programs, to each consumer provided with a loan pursuant to this section.
Authority to Expand Access
As part of the grants, agreements, and undertakings established under this section, the Secretary may implement reasonable measures or programs designed to expand access to financial literacy and education opportunities, including relevant counseling services, educational courses, or wealth building programs to be provided to individuals who obtain loans from eligible entities under this section.