Installment Loans: Will States Safeguard Borrowers from a fresh Wave of Predatory Lending?

Installment Loans: Will States Safeguard Borrowers from a fresh Wave of Predatory Lending?

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

Posted: 2015, National Consumer Law Center july

Key Recommendations Download Maps, Charts, & Tables (PDF) (also B/W variation) Download 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 guidelines) pr 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 rules lenders that are prohibiting recharging borrowers excessively high interest levels on loans

Executive Overview

Their state laws and regulations that govern installment loans have obtained attention that is little days gone by decades. Credit cards, where state legislation is mostly preempted, would be the most extensive supply of small-dollar credit, together with federal-level reforms of 2009 eliminated most of the abusive bank card techniques which had arisen. Continue reading “Installment Loans: Will States Safeguard Borrowers from a fresh Wave of Predatory Lending?”