February 21, 2018
Payday and Other Small Dollar Loans
The so-called "Madden fix" bill would make it easier for predatory payday lenders and other non-banks using rent-a-bank arrangements or partnerships to override state interest rate caps and make loans of 300% annual interest or higher. Unaffordable payday loans and other triple-digit interest predatory loans have devastating consequences for already financially distressed borrowers—trapping them in a cycle of debt and increasing the likelihood of delinquency on other bills, delayed medical care, bankruptcy, and eviction.
Download the two-pager to learn the full dangers of the rent-a-bank scheme. (PDF)