The Louisiana Installment Loan Act ( home Bill 501 / Senate Bill 365 ) would expand the loan that is payday in Louisiana by enabling payday loan providers and automobile name loan providers to supply longer-term “installment loans.” Installment loans act like high-interest payday advances, but enable borrowers to obtain bigger loans for longer amounts of time. The installment loans wouldn’t normally change existing payday advances, but could be a completely brand new item with a high charges for people that create a much greater danger that borrowers gets caught within the predatory lending financial obligation trap.
Payday lenders in Louisiana currently make high-interest loans of $50 to $350 that really must be paid back within 60 times. The proposed bills would also enable loans from $500 to $1,500, with payment durations enduring from six months to at least one 12 months. Continue reading