installment loans

24 Hour Payday Loan Outlet
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Troubled by consumer complaints and loopholes in state laws, the federal government is crafting new rules to protect borrowers of payday loans.

The Consumer Financial Protection Bureau is considering placing caps on the number of times a borrower can take a payday loan and requiring lenders to do credit checks. They also want to encourage states or lenders to lower interest rates on loans.

State Senate chamber
Dave DeWitt / WUNC

State lawmakers in the Senate have tentatively passed a bill that would allow installment loan companies to charge customers higher interest rates and fees.

Republican Senator Rick Gunn is a sponsor of the bill. He says the lending industry hasn't had a rate increase for a long time, and that customers would also be held responsible under the measure.

"Customers need to understand their need to make their payments on time, and according to their contract," says Gunn.