Installment loans just like high-risk as pay day loans, Pew warns

Given that federal government clamps down on conventional pay day loans that cripple low- and moderate-income borrowers with unaffordable repayments, loan providers are moving their companies to installment loans that may be in the same way harsh on struggling individuals, the Pew Charitable Trusts warned Thursday.

Pew, a nonprofit public policy research team, is calling regarding the customer Financial Protection Bureau and state governments to prohibit a few of the interest rates that are harshest and charges at any given time once the federal agency is considering brand brand brand new guidelines for short-term loans individuals sign up for whenever eager for cash between paychecks.