A substitute for Pay Day Loans, but It’s Still High Price

A substitute for Pay Day Loans, but It’s Still High Price

U.S. Bank, among the country’s biggest banks, has once again started offering consumers tiny, high-cost loans, saying the loans currently have safeguards to hold borrowers from getting into over their minds.

The loans, between $100 and $1,000, are designed to assist clients handle unforeseen costs, like a car or truck fix or even a bill that is medical stated Lynn Heitman, executive vice president of U.S. Bank customer banking product sales and help. However the charges equal a yearly interest rate of approximately 70 %.

The loans were designed to be an alternative solution to payday advances, the tiny, short-term, very-high-cost loans — with interest levels often up to 400 percent — that typically must certanly be paid back in complete through the borrower’s next paycheck. Continue reading “A substitute for Pay Day Loans, but It’s Still High Price”