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KOAT: Storefront Lenders Could Go Out of Business When New Law Capping Interest Rates Begins

By December 29, 2022May 9th, 2024No Comments

“The reality is, is that a lot of the folks who use small-dollar loans and rely on this sort of access to credit, they are more modest incomes,” said Andrew Duke of the Online Lenders Alliance.

The new law also affects businesses that give similar loans online.

“Typically, people’s credit scores fall below prime,” Duke said. “And, they are oftentimes not eligible to receive loans from banks and credit unions.”

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