USA Toady on fast loans of a payday nature:
Payday loans — the “lifesavers” that drown you in debt — are on the decline.
Fines and regulatory scrutiny over high rates and deceptive practices have shuttered payday loan stores across the country in the last few years, a trend capped by a proposal last summer by the Consumer Financial Protection Bureau to limit short-term loans.
Consumer spending on payday loans, both storefront and online, has fallen by a third since 2012 to $6.1 billion, according to the nonprofit Center for Financial Services Innovation. Thousands of outlets have closed. In Missouri alone, there were approximately 173 fewer active licenses for payday lenders last year compared to 2014.
In response, lenders have a new offering that keeps them in business and regulators at bay — payday installment loans.
Payday installment loans work like traditional payday loans (that is, you don’t need credit, just income and a bank account, with money delivered almost instantly), but they’re repaid in installments rather than one lump sum. The average annual percentage interest rate is typically lower as well, 268% vs 400%, CFPB research shows.
Spending on payday installment loans doubled between 2009 and 2016 to $6.2 billion, according to the CFSI report.
Rest at: https://www.usatoday.com/story/money/personalfinance/2017/05/22/payday-loans-dying-problem-solved-not-quite/101611192/
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