Of the Paige Marta Skiba, Professor out of Law, Vanderbilt University; and you can Caroline Malone, Ph.D. Pupil in law and you may Business economics, Vanderbilt School
Payment fund appear to be a kinder, softer variety of the “predatory” cousin, new payday loans. But also for users, they can be a lot more unsafe.
Utilization of the fees loan, where a customer borrows a lump sum and you can will pay straight back the main and you can interest in several typical costs, has grown drastically as 2013 because the authorities started initially to rein in the pay check lending. Indeed, payday loan providers appear to have establish repayment fund primarily in order to avert so it increased scrutiny.
A closer look in the differences when considering the 2 form of fund reveals why we trust the organization in repayment funds was worrying – and requires an identical regulatory focus once the payday loans. (mais…)