Installment loans by Payday lenders evade laws and perpetuate predatory assault on consumers
By Paige Marta Skiba, Professor of Law, Vanderbilt University; and Caroline Malone, Ph.D. Student in Law and Economics, Vanderbilt University Installment loans seem like a kinder, gentler version of their “predatory” cousin, the payday loan. But for consumers, they may be even more harmful. Use of the installment loan, in which a consumer borrows a lump sum and pays back the principal and interest in a series of regular payments, has grown dramatically since 2013 as regulators began to rein in payday lending. In fact, payday lenders appear to have developed installment loans primarily to evade this increased scrutiny....
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