Payday & Installment Loans Archives

Consumer Financial Protection Bureau Guts Rule to Rein in High-Cost Short-Term Loans

February 14, 2019

FOR IMMEDIATE RELEASE: February 6, 2019 New Rule Proposal, If Finalized, Will Likely Face a Legal Challenge WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) under the leadership of new director Kathy Kraninger has proposed to largely repeal a common-sense rule that was scheduled to go into effect later this year that would…

Predatory Installment Lending in the States: A Larger and Longer Debt Trap? (2018)

October 1, 2018

Analysis of States’ APR Caps for a $10,000 five-year Installment Loan Everything that is wrong with a high-cost loan is only made worse when the loan is larger and longer. Even when the interest rate is lower than for a short-term payday loan, a larger, longer high-cost loan can be a deeper, longer debt trap.…

Predatory Installment Lending in the States: States Battle to Restrain High-Cost Loans (2017)

October 1, 2017

When the National Consumer Law Center published the report Installment Loans: Will States Protect borrowers From a New Wave of Predatory Lending? in July 2015, predatory installment lenders were moving into the states, seeking statutory authority to make consumer installment loans at sky-high interest rates. The report analyzed which states allowed high-cost installment lending and…

Misaligned Incentives: Why High-Rate Installment Lenders Want Borrowers Who Will Default

July 27, 2016

OVERVIEW In a responsible loan market, the lenders’ profits are closely aligned to the successful repayment of the credit. Yet high-rate installment lending can lead to asymmetrical incentives:As long as the borrower pays long enough before defaulting, a high-rate installment loan will be profitable. If the borrower makes even half the payments on a longer term high-rate installment…

NCLC Report: Why High-Rate Installment Lenders Want Borrowers Who Will Default

July 21, 2016

FOR IMMEDIATE RELEASE: JULY 21, 2016 || Contacts: Lauren Saunders ([email protected] or 202.595.7845) Access full report, charts, and additional resources: http://bit.ly/2a8I9T5 (WASHINGTON) As the Consumer Financial Protection Bureau prepares to tighten rules for payday loans, lenders are moving into dangerous high-rate installment loans, according to a new report from the National Consumer Law Center (NCLC). Misaligned Incentives: Why…

Installment Loans: Will States Protect Borrowers from a New Wave of Predatory Lending? (2015)

July 30, 2015

This National Consumer Law Center survey analyzes the strengths and gaps of the statutes in 50 states and Washington, D.C. that regulate installment loans, a market that is expected to grow as restrictions on payday loans increase.

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