Escalating Debt: The Real Impact of Payday Loan Apps Sold as Earned Wage Advances (EWA)
Our new report shows that people who take out these loans experience steep costs as well as increasing financial stress due to increased use over time.
Payday, car-title, and similar high-cost loans, typically with interest rates of 100% APR and higher, trap people in crippling long-term debt. CRL advocates for regulators to require lenders to verify borrowers can afford to repay a loan before that loan is issued. CRL also advocates for interest rate caps of no higher than 36% APR and for enforcement of current usury laws.