This report, by the National Consumer Law Center, examines over 100 payday loan alternatives and finds many that are genuine alternatives and others that are a payday loan by any other name. The report describes the history of the 36% rate cap and explains why, to be a safe and affordable alternative to a payday loan, a loan must:
• be under 36% including fees;
• be 90 days or longer;
• have multiple, amortizing installment payments;
• not require coercive security.
The report recalculates the APR for many loans, including fees, and shows how some national banks and credit unions, including federal ones, are offering triple-digit loans that pose the same dangers as payday loans. The report also lists many institutions that are offering affordable small loans.