May 2021 © Copyright 2021, National Consumer Law Center, Inc. All rights reserved. 1. How Well Do the States Protect Consumers Against High-Cost Installment Loans? Map 1: APRs Allowed for Six-Month $500 Installment Loan Map 2: APRs Allowed for Two-Year $2,000 Installment Loan 2. Why States Should Cap Interest Rates and Fees 3. [...]
Interest rate limits are the simplest and most effective protection against predatory lending. Since the time of the American Revolution, states have limited interest rates to protect their residents. American voters strongly support interest rate caps. At least 45 states and the District of Columbia (DC) cap rates on at least some installment loans. But [...]
Predatory Rent-a-Bank Loan Watch List by State Policy Briefs & Fact Sheets Brief: Why Cap Interest Rates at 36%?, August 2021 Brief: Predatory Rent-a-Bank Schemes Are Evading State Law Across the Country; Congress Must Repeal the OCC’s Fake Lender Rule, May 2021 Brief: Who Supports Overturning the OCC’s “Fake Lender” Rule?, May 2021 Fact Sheet: Correcting the Record: [...]
HOT TOPICS Brief: Why Cap Interest Rates at 36%?, August 2021 Brief: After Payday Loans: Consumers Find Better Ways to Cope with Financial Challenges, August 2021 Fact Sheet: State Rate Caps for $500 and $2,000 Loans, February 2020 (1-pager), updated March 2021 Report: Predatory Installment Lending in the States: 2020, February 2020 Report: A Larger and Longer Debt [...]
Policy Analysis || Additional Resources The banking industry is making forays into the high-cost lending market with “bounce protection” plans, a new form of high-cost credit that boosts fee income for banks. Using aggressive marketing techniques, banks are encouraging their low- and moderate-income customers to use bounce loans as a source of credit. Rather than [...]
Used mostly by low and moderate income consumers, tax refund anticipation loans are extremely high-cost bank loans secured by the taxpayer's expected refund -- loans that last 7-14 days until the actual IRS refund repays the loan. Even without the costly loan, most taxpayers could have their refund in two weeks or less. RALs are [...]
HOT TOPICS Predatory Rent-a-Bank Lending Testimony of Lauren Saunders Before the U.S. House Committee on Financial Services Task Force on Financial Technology On “Buy Now, Pay More Later Investigating Risks and Benefits of BNPL and Other Emerging Fintech Cash Flow Products,” Nov. 1, 2021 Letters Urging CFPB to Reverse Earned Wage Access Actions (Coalition, Legal [...]
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