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World and its competitors push customers to renew their loans over and over again, transforming what the industry touts as a safe, responsible way to pay down debt into a kind of credit card with sky-high annual rates, sometimes more than 200 percent.
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(g) Prohibition on making a covered short-term loan under § 1041.
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Making such loans would enable banks to serve customers who do not qualify for prime products without imposing costly overdraft penalty fees, which are a primary source of bank credit for these same customers today.
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compared the changes in credit scores of borrowers who defaulted on their loans with borrowers who did not, and also found no difference.
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