Are state interest-rate caps a automated victory for borrowers?
Are state interest-rate caps a automated victory for borrowers?
Small-dollar, short-term loan providers, unburdened by way of a federal interest that is maximum, may charge borrowers prices of 400% or even more with regards to their loans.
But more states are bringing that quantity down by setting rate caps to suppress lending that is high-interest. Currently, 18 states and Washington, D.C. , have actually regulations that restrict short-term loan prices to 36% or reduced, in accordance with the Center for Responsible Lending. (more…)