Payday loan providers have embraced loans that are installment evade regulations – nonetheless they might be a whole lot worse

Payday loan providers have embraced loans that are installment evade regulations – nonetheless they might be a whole lot worse

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Professor of Law, Vanderbilt University

Ph.D. Scholar in Law and Economics, Vanderbilt University

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Installment loans look like a kinder, gentler form of their “predatory” relative, the cash advance. However for customers, they may be much more harmful.

Utilization of the installment loan, by which a customer borrows a swelling amount and will pay right back the key and fascination with a few regular payments, has exploded significantly since 2013 as regulators started initially to rein in lending that is payday.