Urban Institude report recommends better disclosures and increased competition to protect consumers

WASHINGTON--A new report by the Urban Institute finds that if payday advances are eliminated they “could be replaced by alternatives that make
families even worse off.”

In “Enabling Families to Weather Emergencies and Develop the Role of Assets,” by Signe-Mary McKernan and Caroline Ratcliffe, the researchers find that low-income working families need access to small loans, such as payday advances, to help weather bad patches. 

Instead of regulating prices charged on small, short-term loans, the authors argue that increasing competition will drive prices down. They express concern that ... Continue Reading