Payday & Installment Loans Archives

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Instead of Predatory Loans, a Variety of Strategies Can Help People to Address Budget Shortfalls

February 1, 2022

The Veterans and Consumers Fair Credit Act will cap interest on personal loans at 36%. Predatory, high-interest loans do not help people, they only put people deeper in debt and make problems worse. There are no easy answers to not having enough money, but consumers can and already do make use of a wide range of safer and more affordable options when times are tough.

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Consumer Stories Show Congress Must Protect Consumers from Predatory Lending

February 1, 2022

Since the American Revolution, states have limited interest rates to stop predatory lending. Although most states limit rates, loopholes and evasions make protections imperfect. These unscrupulous lenders target vulnerable consumers, including veterans, senior citizens, low-income consumers, rural consumers, and communities of color.

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Why Cap Interest Rates at 36%?

August 4, 2021

Thirty-six percent is widely seen as the dividing line between affordable small-dollar loans and unaffordable, potentially predatory ones. Several states have capped interest rates at 36%, and Congress is considering doing so to stop the devastating impact that high-cost loans have on struggling families. But the question arises: Why 36%?

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Stop Payday Lenders' Rent-A-Bank Schemes

January 14, 2020

Payday lenders are starting to make usurious loans up to 160% in states where those rates are illegal by using banks, which are not subject to state rate caps, as a fig leaf. Banks have little to do with the loans, which they immediately sell. Bank regulators shut down these schemes in the early 2000s,…

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State Rate Caps for $500 and $2,000 Loans

November 15, 2023

Bar graphs showing the Annual Percentage Rate Caps for $500 and $2,000 Loans

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Letter Regarding S.B. 472, Earned Income Access Service Providers Act

July 5, 2019

Letter in opposition to the current version of the Earned Income Access Service Providers Act, which fails to address the critical issues discussed in NCLC’s April 24, 2019 letter.

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Instead of Predatory Loans, a Variety of Strategies Can Help People to Address Budget Shortfalls

Consumer Stories Show Congress Must Protect Consumers from Predatory Lending

Why Cap Interest Rates at 36%?

Stop Payday Lenders' Rent-A-Bank Schemes

State Rate Caps for $500 and $2,000 Loans

Letter Regarding S.B. 472, Earned Income Access Service Providers Act

Support NCLC