The CFPB and Installment Lending

Business Week wrote an article titled, Payday Lenders Evading Rules Pivot to Installment Loans. The trend of large payday lenders moving to installment products.  Lets be honest, payday loans have a huge target on their back.  An installment loan can be no different than a mortgage loan and it’s fundamentally better than a credit card or line of credit.

A couple of notables from the BW article:

On May 14, Rohit Dewan, a financial analyst in the consumer bureau’s Office of Installment and Liquidity Lending, said on a conference call with analysts that an installment loan “seems like a safer product” than a payday loan.

Thomas Bessant, chief financial officer of Cash America, said that’s one reason “the subprime category of installment products” has become a new focus for the firm.


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