High-cost installment loans: No improvement over pay day loans

High-cost installment loans: No improvement over pay day loans

Until 2013, a small number of banking institutions had been siphoning vast amounts yearly from consumer records through “direct deposit advance” — items that carried typical annualized rates of interest of as much as 300%. Like storefront payday advances, deposit advance ended up being marketed as a periodic connection to a consumer’s next payday. But in addition like storefront pay day loans, these bank products caught borrowers in long-term, debilitating financial obligation. Continue reading “High-cost installment loans: No improvement over pay day loans”