Payday advances target consumers without any credit or low fico scores. These high-interest loans vow quick money through to the next paycheck comes in, but frequently they create dangerous rounds of the latest loans to repay the old people, draining funds and pressing borrowers ever deeper into poverty.
In 2018, the Federal Trade Commission sued major payday lender AMG solutions for deceptive lending that involved illegal withdrawals and charged hidden fees. The $505 million in restitution AMG decided to may be the biggest reimbursement the FTC has administered up to now, covering a believed 1.1 million borrowers.
Today, consumers possess some defense against this type of predatory lending through the Payday, Vehicle Title, and Certain High-Cost Installment Loans rule through the Consumer Financial Protection Bureau.
But an alternative solution kind of lending, called installment loans, are quietly growing as an alternative that is less-regulated pay day loans.
Exactly what are installment loans? Issues with short-term loans
Installment loans are included in a consumer that is non-bank market, meaning they’ve been descends from a customer finance business rather than a bank. (more…)Learn More