2023 Update: Some States Tighten Rules Against High-Cost Installment Loans; Others Increase Interest Rates and Allow Junk Fees to Pile On
Clear Rate Caps that Prevent Evasions are Critical to Protecting Consumers from Unaffordable Loans
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Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans? (2023)
Forty-five states and the District of Columbia (DC) currently cap interest rates and loan fees for at least some consumer installment loans, depending on the size of the loan. However, the caps vary greatly from state to state, and a few states do not cap interest rates at all.
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NPR: Apple rolls out Apple Pay Later — a buy now, pay later service
Airing during NPR’s Morning Edition on Mar. 30, 2023, Lauren Saunders talks about Apple allowing some iPhone users to pay for purchases up to $1,000 in installments using Apple Pay Later. Buy now, pay later loans can be tricky, said Lauren Saunders, associate director at the National Consumer Law Center. “They can make things look…
Read More about NPR: Apple rolls out Apple Pay Later — a buy now, pay later service
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Credit Math Software
This page links to four different software programs to calculate credit math functions, including calculating an Annual Percentage Rate (APR), a Military Annual Percentage Rate (MAPR), and Rule of 78 rebates. Each program has different limitations, such as whether it is compatible with MacOS or iOS. Some of the programs deal with irregular payments better…
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Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans? (2021)
This is an outdated report. For the most current version click here. Caps on interest rates and loan fees are the primary vehicle by which states protect consumers from predatory lending. Forty-five states and the District of Columbia (DC) currently cap interest rates and loan fees for at least some consumer installment loans, depending on the size…
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Why Cap Interest Rates at 36%?
Thirty-six percent is widely seen as the dividing line between affordable small-dollar loans and unaffordable, potentially predatory ones. Several states have capped interest rates at 36%, and Congress is considering doing so to stop the devastating impact that high-cost loans have on struggling families. But the question arises: Why 36%?
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Comments to the FDIC Regarding Parent Companies of Industrial Banks and Industrial Loan Companies
Consumer and civil rights groups write to strongly oppose the Federal Deposit Insurance Corporation (FDIC)’s proposed rule on Parent Companies of Industrial Banks and Industrial Loan Companies (proposal or proposed rule) as well as the agency’s approval of new ILC charters. While these actions raise a number of concerns, our comments focus on the dramatic…
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Overturn the OCC's "Fake Lender" Predatory Lending Rule
Since the American Revolution, states have limited interest rates to stop predatory lending. But predatory lenders are starting to launder their loans through banks to evade state laws that make loans up to 179% APR illegal (Bank loans are generally exempt from state rate caps). A rule by the regulator of the nation’s largest banks…
Read More about Overturn the OCC's "Fake Lender" Predatory Lending Rule
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