An alternate to Payday Advances, but It’s Still High Cost

An alternate to Payday Advances, but It’s Still High Cost

U.S. Bank, among the country’s biggest banks, has once again begun offering clients little, high-cost loans, saying the loans will have safeguards to hold borrowers from getting back in over their minds.

The loans, between $100 and $1,000, are designed to assist clients cope with unforeseen costs, like a motor vehicle fix or even a bill that is medical stated Lynn Heitman, executive vice president of U.S. Bank customer banking product sales and help. Nevertheless the charges mean an interest that is annual of approximately 70 per cent.

The loans had been intended to be an alternate to payday advances, the tiny, short-term, very-high-cost loans — with interest levels often up to 400 percent — that typically needs to be paid back in complete through the borrower’s next paycheck. Read more