The Louisiana Installment Loan Act ( home Bill 501 / Senate Bill 365 ) would expand the loan that is payday in Louisiana by enabling payday lenders and automobile title loan providers to provide longer-term вЂњinstallment loans.вЂќ Installment loans act like high-interest pay day loans, but enable borrowers to get bigger loans for longer amounts of time. The installment loans would not change current pay day loans, but could be a completely brand brand brand new item with a high charges for people who create a much better danger that borrowers can get caught within the predatory lending financial obligation trap.
Payday loan providers in Louisiana currently make high-interest loans of $50 to $350 that really must be paid back within 60 days. The proposed bills would additionally enable loans from $500 to $1,500, with payment durations enduring from a few months to at least one 12 months. The middle for Responsible Lending calculates that the $500 loan, repayable over 6 months, would carry a 245 % percentage that is annual (APR), whenever all charges are included. Continue reading “Policy Quick: Installment Loan Act Would Expand Predatory Lending in Louisiana”