As Payday Loan Marketplace Changes, States Need Certainly To React

As Payday Loan Marketplace Changes, States Need Certainly To React

Ohio’s Fairness in Lending Act is a good model for reforms

State lawmakers should be regarding the alert: Big modifications are underway within the pay day loan market, some of which are going to be harmful to borrowers and socially accountable loan providers. Longer-term, high-cost payday and automobile title installment loans have spread significantly as businesses diversify their company models so that they can reduce reliance on traditional pay day loans. Nevertheless, without state-level safeguards, these longer-term products frequently have exorbitant rates, unaffordable re re re payments, and unreasonably brief or long durations, and so is often as damaging to borrowers as traditional loans that are payday. Continue reading “As Payday Loan Marketplace Changes, States Need Certainly To React”