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Payday loan providers have embraced installment loans to evade laws – nevertheless they can be a whole lot worse

Payday loan providers have embraced installment loans to evade laws – nevertheless they can be a whole lot worse

By Paige Marta Skiba and Caroline Malone

Installment loans appear to be a kinder, gentler form of their “predatory” relative, the loan that is payday. However for customers, they might be a lot more harmful.

Utilization of the installment loan, by which a customer borrows a lump amount and will pay right back the key and fascination with a few regular re re re payments, has exploded considerably since 2013 as regulators started initially online installment HI to rein in payday financing.