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: 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: The OCC’s “Fake Lender” Rule Expands Harmful, Predatory Lending, [...]
HOT TOPICS Report: A Larger and Longer Debt Trap?: Analysis of States' APR Caps for a $10,000 Five-Year Installment Loan, Oct. 2018 Press Release Predatory Installment Lending in 2017: States Battle to Restrain High-Cost Loans, Aug. 2017 Comments to OCC on special purpose national bank charters, Jan. 17, 2017: NCLC comments. Short coalition comments. Report: Installment Loans: [...]
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 State Rate Caps for $500 and $2,000 Loans, March 2021 Predatory Rent-a-Bank Lending CFPB Guts Curbs on Unaffordable 400% APR Payday Loans, July 7, 2020 Early Wage Access: A Good Option for Workers or a Fintech Payday Loan? State Rate Caps for $500 and $2,000 Loans: Report What States Can Do to [...]
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