More Californians are taking loans with 3-digit interest rates. Will state restrict them?
As California borrowers move away from small payday loans, new data from a state agency show they’ve shifted to larger and more expensive credit with triple-digit interest.
Larger loans increased by 9 percent last year to a total 1.6 million loans, with a third falling between $2,500 and $4,999, according to an August report from the state Department of Business Oversight.
The state does not regulate interest rates on those loans, and 55 percent of the borrowing in that range carried triple-digit rates in 2018.
“There continues to be a lot of predatory lending happening and the targeting of consumers for the lending are those who can least afford it,” said Marisabel Torres, the California policy director for the advocacy group Center for Responsible Lending. “These loans are carrying an average (rate) of 100 percent or more, making them incredibly expensive products. And the people who are buying these products aren’t making a lot of money.”
Read more: https://www.sacbee.com/news/politics-government/capitol-alert/article234402162.html
= new reply since forum marked as read
