Payday & Installment Loans Archives

Broad Coalition Supports New Senate Bill to Cap Interest Rates for Loans

February 11, 2026

WASHINGTON – As the prospect of an interest rate cap has moved to the forefront of national public policy discussions, the National Consumer Law Center (NCLC) joined over 170 civil rights, consumer, and community groups and leaders in a letter endorsing the Predatory Lending Elimination Act. This new legislation, introduced by U.S. Senator Jack Reed…

Coalition Letter in Support of the Predatory Lending Elimination Act

February 11, 2026

Consumer, faith, civil rights, labor, human rights, and community advocacy groups, urge support for the Predatory Lending Elimination Act (S3793), sponsored in the Senate by Senator Jack Reed. This bill is the solution to the worst practices by predatory lenders in the consumer loan market. By expanding the protections already afforded active-duty service members under…

Earned Wage Payday Loans Compound the Affordability Problem

February 10, 2026

With Apps Taking $300/year or more from Workers, Lawmakers Should Reject Bills Removing Protections for Active Duty Service Members and Preempting State Payday Loan Laws

Written Testimony in Support of Maryland Earned Wage Revisions

January 29, 2026

A new breed of payday loans, so-called earned wage access products, exacerbate affordability problems by taking hundreds of dollars per year from low-wage workers. This written testimony from NCLC supports a Maryland bill that will prevent manipulations that increase fees and make workers pay to be paid. NCLC’s testimony also suggests several amendments to the…

Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans? (2025)

December 19, 2025

© Copyright 2025, National Consumer Law Center, Inc. All rights reserved. Caps on interest rates and junk fees are the primary vehicle by which states protect consumers from predatory lending. Forty-five states and the District of Columbia currently cap interest rates and loan fees for at least some consumer installment loans, depending on the size…

Burkhardt et al. v. MoneyLion Technologies Inc. et al.

October 17, 2025

Johnathan Burkhard and Deven Burkhardt, individually and on behalf of all others similarly situated v. MoneyLion Technologies Inc., ML Plus, LLC, and MoneyLion of Florida, LLC, No. 3:25-cv-00693 (N.D. Fla.) This case seeks relief against predatory earned wage access lender MoneyLion and related companies on behalf of a nationwide class of servicemembers and their spouses…

MoneyLion’s Costly “0% APR” “Earned Wage” Payday Loans

May 22, 2025

A New York Attorney General (NY AG) lawsuit shows how costly “earned wage” payday loans can be -- up to hundreds of dollars a year.

CFPB Allows Payday Lenders to Inflict Multiple NSF and Overdraft Fees on Struggling Consumers

March 28, 2025

CFPB won’t enforce Bounced Payment Rule held up by U.S. Supreme Court, Fifth Circuit

Letter in Opposition to New Mexico HB 59

January 31, 2025

HB 59 would exempt fintech payday loans from New Mexico’s lending laws and interest rate limits. The bill is based on the model law by the conservative American Legislative Exchange Council (ALEC). It offers a fee limit that would still result in triple digit APRs and mounting fees, places no cap on purportedly voluntary “tips”…

CFPB Rescinds 2020 Advisory Opinion on Earned Wage Advances

January 16, 2025

The CFPB found that the 2020 Opinion’s analysis of what constitutes “credit” under TILA was “significantly flawed” and that the Opinion, which was limited to completely free advances, had been misunderstood and misused to support claims that EWAs are not credit.

50-State Survey: APRs Increase As States Allow Lenders to Pile on Junk Fees

November 21, 2024

Interest rate caps still vary greatly from state to state, rates are trending upward, and too many states allow lenders to pile on junk fees.

Predatory Installment Lending in the States: How Well Do the States Protect Consumers Against High-Cost Installment Loans? (2024)

November 21, 2024

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.

All

Support NCLC