U.S. Bank recently introduced a fresh loan product that is small-dollar. By the bankвЂ™s description that is own it is a high-cost item, at 70-88% APR.
High-cost loans by banking institutions provide a mirage of respectability. A factor with this impression may be the misguided indisputable fact that restricting payment size to 5% of revenues means the mortgage is affordable for some borrowers. But these services and products will soon be unaffordable for a lot of borrowers and erode protections from ultimately predatory financing over the board.
A couple of years ago, a number of banking institutions were making triple-digit rate of interest, unaffordable pay day loans that drained consumers of half a billion bucks a year. Continue reading