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.
