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BankThink High-cost loans one step into the direction that is wrong

U.S. Bank recently introduced a brand new loan product that is small-dollar. By the bank’s description that is own it is a high-cost item, at 70-88% APR.

High-cost loans by banking institutions provide a mirage of respectability. A factor of the impression could be the idea that is misguided restricting payment size to 5% of revenues means the mortgage is affordable for some borrowers. However these services and products would be unaffordable for all borrowers and erode protections from ultimately predatory financing throughout the board.

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