Payday lending proposal would ‘bait and switch’ vulnerable Nevadans, critics say

Source
Eric Neugeboren | The Daily Indy
In 2023, Nevada had the fifth-highest average annual interest rate for payday loans at 548 percent, according to a report from the Center for Responsible Lending, a nonprofit that opposes the practice. From February 2022 to January 2023, around 150,000 payday loans were made in the state, about 15 percent of which were paid after the due date, according to...
More
Payday and Other Small Dollar Loans

High-Cost Lenders Scheme with Banks to Evade Consumer Protections

High-Cost Lenders Scheme with Banks to Evade Consumer Protections

A few high-cost lenders are evading state consumer protections through rent-a-bank schemes. Through these sham arrangements, these companies are exploding right through the interest rate limits that most states have put in place for good reason, to protect people from high-cost debt traps that drain them of their hard-earned income. In the following states, payday lenders are using banks, which...
More
Research
Payday and Other Small Dollar Loans

Analysis: Democrats dominate the Nevada Legislature, so why are progressives unhappy?

Source
James DeHaven | Reno Gazette Journal
Nearly 300 bills died last week in the Democrat-dominated Nevada Legislature. Outnumbered Republicans were far from the only ones left to mourn the casualties. Progressive activists were flummoxed by a number of bills either heavily amended or scrapped ahead of the first major bill passage deadline. From hiking the minimum wage to regulating “predatory” payday lenders to eliminating cash bail...
More
Payday and Other Small Dollar Loans

Payday and Car Title Lenders Drain Nearly $8 Billion in Fees Every Year

Payday and Car Title Lenders Drain Nearly $8 Billion in Fees Every Year

Payday and car-title loans typically carry annual percentage rates (APR) of at least 300%. These high-cost loans are marketed as quick solutions to a financial emergency. Research demonstrates, however, that they frequently lead to debt that is nearly impossible to escape. In addition, these loans are related to a cascade of other financial consequences, such as increased overdraft fees, delinquency...
More
Research
Payday and Other Small Dollar Loans