More Americans come into the banking system, By Mitchell Hartman, September 9, 2016, Marketplace: “‘Unbanked’ is the term used by financial regulators and consumer advocates to describe people who live, work, pay bills and borrow for emergencies, entirely outside the traditional banking system. Being ‘unbanked’ can limit peoples’ access to affordable credit, and leave them vulnerable to predatory lending…”
Tag: Financial services
Predatory Lending
Payday loans’ potentially predatory replacement, By Gillian B. White, August 12, 2016, The Atlantic: “Dangerous, high-cost lending isn’t going away anytime soon. While some have heralded the Consumer Financial Protection Bureau’s long-awaited payday-lending regulations as significant progress toward the end of predatory lending practices, other, similar products have, as predicted, started to take their place…”
Payday Lending
Payday loans’ debt spiral to be curtailed, By Stacy Cowley, June 2, 2016, New York Times: “The payday loan industry, which is vilified for charging exorbitant interest rates on short-term loans that many Americans depend on, could soon be gutted by a set of rules that federal regulators plan to unveil on Thursday. People who borrow money against their paychecks are generally supposed to pay it back within two weeks, with substantial fees piled on: A customer who borrows $500 would typically owe around $575, at an annual percentage rate of 391 percent. But most borrowers routinely roll the loan over into a new one, becoming less likely to ever emerge from the debt…”