An incredible number of People in the us, specially individuals with low-incomes, utilize alternate economic sector (AFS) loans—such as payday advances, automobile name loans, and reimbursement expectation loans—to meet their short?term requirements. These loans usually start off small but can soon add up to significant financial obligation burdens and may undermine a household’s power to build assets. To create more efficient lending options for low- and moderate-income households, we want a far better knowledge of what motivates them to utilize these loans. We should also understand the advantages and dangers to people and communities whenever households count on these solutions. Public policy comes with a important part to play in protecting customers from abusive terms and items, while making sure they will have proceeded use of small-dollar loans to meet up their credit requirements.
The Urban Institute took on an one-year task studying monetary solution services and products. Listed here are five of y our brand new analyses and findings
- Report on Prohibitions, Price Caps, and Disclosures: supplies a nationally representative image of the connection between state alternate monetary sector policies and customer usage across five AFS items.
- Report on Refund Anticipation Loans and Refund Anticipation Checks: Assesses whom makes use of reimbursement expectation loans and checks and just why, by examining income tax return information and interviews that are conducting tax return preparers and stakeholders. Read more