December 5, 2019
The rate of interest that can be charged on loans, there exist broad exemptions, exceptions, and loopholes based on the type of lender or borrower, the loan amount, the nature of the loan contract, or the subject of the loan contract although every state has laws that limit.
Some loan providers have discovered a real method to have around those regulations.
According to Lauren Saunders, an lawyer using the nationwide Consumer Law Center (NCLC) who was simply recently interviewed by NPR’s Chris Arnold for “All Things Considered, ” a lot of online loan providers are employing exactly what she calls “rent-a-bank schemes” for them to skirt state guidelines, since many banking institutions aren’t at the mercy of state rate of interest caps. (mehr …)