Tomorrow the North Carolina House Banking Committee will hear proposed legislation (already passed by the Senate) to jack up rates on already exorbitantly priced installment loans.
And in case you had any doubts as to what the proposal (and others like it) are at least partially about, check out this news story from earlier today over at Bloomberg News:
Payday Lenders Evading Rules Pivot to Installment Loans
For three years, payday lenders have been bracing for dedicated scrutiny from a U.S. agency for the first time. One way they’re getting ready: switching to loans designed to fall outside the regulator’s grasp.
Companies including Cash America International Inc. (CSH) and Advance America Cash Advance Centers Inc. (AEA) are increasingly selling longer-term installment loans to avoid rules the Consumer Financial Protection Bureau may impose on their shorter-term products.
Read the entire article by clicking here.