FILE – In this file picture, money is fanned out of a wallet in North Andover, Mass. High-interest payday and lenders that are online always been among the list of few alternatives for People in america with bad credit and reduced incomes. Guidance issued into the springtime by federal regulators cut a previously recommended price limit on loans and that could mean banks begin lending small-dollar, high-interest loans. (AP Photo/Elise Amendola, File) Elise Amendola
When it comes to an incredible number of Us citizens who find it difficult to pay for an urgent cost, high-interest payday and online loans might seem like acceptable options regardless of the risk that is inherent.
But guidance released by federal regulators within the spring could bring a competitor to small-dollar financing: banking institutions. (more…)