Installment Loans: Will States Safeguard Borrowers from an innovative new Wave of Predatory Lending?

Installment Loans: Will States Safeguard Borrowers from an innovative new Wave of Predatory Lending?

This National customer Law Center study analyzes the talents and gaps for the statutes in 50 states and Washington, D.C. That regulate installment loans, an industry this is certainly likely to develop as restrictions on pay day loans enhance.

Key Recommendations Download Maps, Charts, & Tables (PDF) (also B/W variation) down load Appendices (PDF) Appendix the (Comprehensive APR tables for 6-month $500 loan) Appendix B (Comprehensive APR tables for 2-year $2000 loan) Appendix C (Summaries of state closed-end installment loan statutes) Appendix D (Summaries of state open-end credit statutes) Appendix E (Unconscionability conditions of state closed-end installment loan rules) news release

Additional Resources

  • Tiny Dollar Loan Products SCORECARD & Statutory Backup – improve: Scorecard programs Consumers Pay Steep Rates for Small Loans, might 2010
  • Why Cap Small Loans at 36per cent?
  • Usury guidelines prohibiting loan providers from recharging borrowers exorbitant interest rates on loans

Executive Overview

Their state regulations that govern installment loans have received attention that is little days gone by years. Bank cards, where state legislation is basically preempted, would be the many widespread way to obtain small-dollar credit, plus the federal-level reforms of 2009 eliminated lots of the credit that is abusive methods which had arisen. Within the subprime and subprime that is deep, policymakers have centered on the harms of pay day loans.

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