Originally appearing in American Banker (subscription) on May 21, 2023, Polo Rocha interviews Lauren Saunders for a look at how several large and regional banks have started offering small-dollar loans to their cash-strapped customers and at how many Americans are using the products.
Banks’ small-dollar loan products are a good option as long as they charge APRs below 36%. The loans are a far better choice than overdraft fees, payday loans or high-cost installment loans, said Lauren Saunders, associate director at the National Consumer Law Center. “It’s a positive development that we are seeing banks offering affordable small-dollar loans.”
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