Seen the scrutiny and regulations for payday advances?
Well, while you were watching that, a new form of consumer debt has been scaling up.
And it’s been largely beneath the radar.
They’ve just changed the name and the terms for repayment.
But the up to triple-digit interest rates are still the same.
It’s called an “online installment loan.” And unlike payday loans, consumers have much longer to pay it back. Usually 4-60 months.
And it’s gone from a niche to a red-hot industry.
And the middle class is the target.
To the tune of about $50 billion.
Loans range from $100-$10,000+.
Write offs in the first 6 months of 2019 were 12%.
That’s versus 3.6% for the credit card industry.
Will this be the next subprime scandal?
Yes or No?
Read more here.