Pay day loans and installment loans (in particular, the kind supplied by World Finance) are just exactly what customer advocates call ‘small-dollar, high-cost loans that are. They often times carry high interest. This is certainly in component as the borrowers are generally low-income, and/or have dismal credit or small credit rating. Such subprime borrowers might not have use of cheaper kinds of consumer credit—such as charge cards or home-equity loans through banking institutions or credit unions.

Payday financing has also been the goal of criticism by customer advocates together with new customer Financial Protection Bureau. Installment lending has flown mainly beneath the radar of general public attention and increased regulatory scrutiny. Continua a leggere What’s the difference between payday and installment loans?