miwekpaopayloans

[miwekpaopayloans]

MidweekPay.com Payday Loans

MidweekPay.com Payday Loans

law that attempted to reform the payday lending industry failed to achieve policymakers’ goals of reducing harm to payday borrowers while preserving access to small-dollar credit. The law preserved lump-sum lending, allowing lenders to make four consecutive balloon-payment loans but then requiring them to offer borrowers an installment plan. This approach inadvertently preserved a business model in which lenders' and borrowers' interests were not aligned: Profitability still relied on income from loans that greatly exceeded most borrowers' ability to repay without re-borrowing. As a result, according to regulators, many lenders moved to protect their profits by deterring or preventing borrowers from using an installment plan. Short-term, balloon-payment loans thus continued to dominate the market, and the law failed to protect consumers as intended, with outcomes for borrowers changing only slightly.