The National Consumer Law Center recommends that states protect consumers from high-cost lending by implementing the following measures: (1) Cap APRs at no more than 36% for smaller loans (e.g., $1,000 or less) with lower rates for larger loans; (2) Prohibit or strictly limit loan fees to prevent them from undermining interest rate caps or incentivizing loan flipping; (3) Include all payments in the APR calculation, regardless of whether they are deemed 'voluntary,' to prevent lenders from disguising fees as tips, expedite fees, or donations; (4) Prevent loopholes for open-end credit by ensuring rate caps apply to lines of credit; (5) Ban the sale of credit insurance and other add-on products; (6) Examine consumer lending bills carefully to identify obscured interest rates, such as those presented as daily or monthly rates rather than annual rates, and reject bills with APRs over 36%.

Authors

• Person: Not available Organization: National Consumer Law Center
  Predatory Installment Lending in the States: How Well Do ... - NCLC

Sources

• Predatory Installment Lending in the States: How Well Do ... - NCLC www.nclc.org National Consumer Law Center via serper

Referenced by nodes (1)

• National Consumer Law Center entity