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National Consumer Law Center Issues Report on Alternatives to Payday Loans

By Brian Wolfman

Some banks and credit unions offer "alternatives" to payday loans that are sold as better deals for consumers than what is offered by store-front payday lenders. The National Consumer Law Center has just issued a report on the topic -- Stopping the Payday Loan Trap -- Alternatives That Work, Ones That Don't. An NCLC press release says that some "loans offered by banks and credit unions as 'alternatives' to  high-cost, short-term payday loans may instead plunge consumers into a costly and nearly inescapable debt cycle ? just like payday loans!" The report's principal author Lauren Saunders explains that ?[t]oo many providers of so-called payday loan alternatives hit consumers with some of the same onerous provisions that predatory lenders use to saddle unwary and vulnerable borrowers with loans they can?t afford to repay.? Check it out.

Full post as published by CL&P Blog on June 09, 2010 (boomark / email).