WASHINGTON-The Federal Deposit Insurance Corporation recently published supplementary guidance concerning safety and soundness and compliance issues for examining and supervising state nonmember institutions with payday lending programs. The high-risk nature and strong growth in payday lending led to the guidance. Borrowers often have cash flow problems that lead them to this type of loan to begin with and payday lenders typically do not evaluate the customers' ability to repay the loan or their credit history. The guidance also includes expectations for risk management, specifically regarding concentrations, capital, allowance for loan and lease losses, classifications, and protection of consumers. Corrective actions could range from formal to informal enforcement action. In severe cases, the institutions may be ordered to discontinue their payday lending programs. Credit unions have been working to offer low-cost alternatives to payday lenders to help get their members out of what can become a dangerous debt cycle.