Why Both Installment And Payday Loans Are Under Regulatory Scrutiny
Both payday loans and installment loans are often described as “small dollar, high-cost loans,” because they are usually for relatively small amounts of money at high rates of interest.
There are many options, but a payday loan will typically be for an amount between $100 and $1,500 dollars for a period of no more than 30 days. As the term “payday” suggests, the idea is that the loan should be repaid when the borrower receives their next paycheck – typically within two to four weeks. The payday loan industry is currently estimated to be worth approximately $38 billion.