As renters across the country face increasing housing insecurity, new rent-splitting products are adding expense and risk. Companies selling rent-splitting loans, also known as “rent now, pay later,” claim to solve tenants’ “cash flow problem” by allowing tenants to break rent into multiple payments. Instead, these loans come at a cost and risk increasing financial pressure on families struggling to keep a roof over their heads.
This issue brief identifies measures states should take to address housing unaffordability and strengthen tenant protections to ensure tenants do not have to resort to high-cost credit products. They must also strengthen existing laws governing these rent-splitting loans.
See all resources related to: Consumer Protection Regulation, High-Cost Credit