Payday lenders focus on longer-term loans to avoid CFPB

05/29/2013 | Bloomberg

Payday lenders are focusing on installment loans with longer terms in an effort to escape the Consumer Financial Protection Bureau's regulation of short-term products. Installment loans typically have repayment terms of 90 days to 18 months and require credit checks and income verification. Consumer advocates, however, say the interest rates on these loans are still high, and they can create the same kind of debt traps for borrowers as payday loans.

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