U.S. Bank, among the country’s biggest banks, has once more started offering clients tiny, high-cost loans, saying the loans currently have safeguards to keep borrowers from getting into over their heads.
The loans, between $100 and $1,000, are designed to assist clients cope with unanticipated costs, like a vehicle fix or perhaps a bill that is medical stated Lynn Heitman, executive vice president of U.S. Bank customer banking product product sales and help. Nevertheless the costs equal a annual rate of interest of about 70 %.
The loans had been designed to be an alternate to payday advances, the little, short-term, very-high-cost loans — with interest levels often since high as 400 percent — that typically needs to be paid back in full through the borrower’s next paycheck. Continue reading