This National Consumer Law Center study analyzes the strengths and gaps for the statutes in 50 states and Washington, D.C. that regulate installment loans, a market this is certainly likely to develop as restrictions on pay day loans enhance.

Key Recommendations Download Maps, Charts, & Tables (PDF) (also B/W version) down load Appendices (PDF) Appendix A (Comprehensive APR tables for 6-month $500 loan) Appendix B (Comprehensive APR tables for 2-year $2000 loan) Appendix C (Summaries of state closed-end installment loan statutes) Appendix D (Summaries of state open-end credit statutes) Appendix E (Unconscionability conditions of state closed-end installment loan regulations) pr release

Additional Resources

Little Dollar Loan Products SCORECARD & Statutory Backup – improve: Scorecard Shows Consumers Pay Steep Rates for Small Loans, might 2010

Why Cap Small Loans at 36per cent?

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Usury guidelines prohibiting loan providers from recharging borrowers exorbitant interest rates on loans

Executive Overview

Their state regulations that govern installment loans have obtained small attention in days gone by decades. Charge cards, where state legislation is basically preempted, would be the most extensive supply of small-dollar credit, plus the federal-level reforms of 2009 eliminated most of the abusive charge card techniques which had arisen. When you look at the subprime and deep subprime market, policymakers have actually centered on the harms of payday advances. Dangerous installment loans have actually flown under the radar, an industry that is likely to develop as restrictions on pay day loans enhance and lenders that are payday to evade defenses.

The attention rate caps as well as other protections that state installment loan guidelines offer consumers will consequently be of good value on the coming years. Continue reading →