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Why loan providers are leaving lump-sum services and products

Why loan providers are leaving lump-sum services and products

The trend among payday and automobile name loan providers toward providing installment loans will be driven by three facets: customer preference, regulatory force, and lenders’ effort to prevent customer defenses applied for lump-sum payment loans.

Customer preference

Pew’s studies have shown that, in contrast to the standard model that is lump-sum cash advance clients overwhelmingly support requiring an installment re re payment framework that offers them more hours to settle loans in lower amounts that match their spending plans.Read More