Full analysis of the laws of 50 states and Washington, D.C., plus maps, charts and tables as well as the complete list of recommendations are available at: http://bit.ly/1LXA9mc
(BOSTON) Payday lenders are moving into the installment loan market, and state laws vary greatly in whether they protect borrowers from unaffordable rates on longer term loans, according to a new report from the National Consumer Law Center (NCLC). The report analyzes the strengths and weaknesses of the laws in the 50 states and the District of Columbia that regulate installment loans, including loans structured as credit card cash advances or other open-end lines of credit. "In theory, installment loans can be safer and more affordable than balloon payment payday loans. But states need to be vigilant to prevent the growth of larger and longer predatory loans that can create a debt trap that is impossible to escape," said Carolyn Carter, director of advocacy at the National Consumer Law Center and co-author of Installment Loans: Will States Protect Borrowers from a New Wave of Predatory Lending?.