California Cash Advance Business Is Apparently Going Toward Larger Customer Installment Loans

California Cash Advance Business Is Apparently Going Toward Larger Customer Installment Loans

SACRAMENTO – California’s pay day loan industry appears to be going toward bigger customer installment loans over $300 and, most of the time, over $2,500, based on loan provider reports released today by the Department of company Oversight (DBO).

The reports reveal the final amount and aggregate buck level of pay day loans continued a lengthy decrease in 2018 while non-bank, unsecured customer loans granted underneath the Ca funding Law (CFL) increased markedly. The pay day loan report is right here (PDF) while the CFL report will be here (PDF).

“The figures as well as other trends highly recommend the cash advance industry is evolving, with loan providers going more into CFL territory,” said DBO Commissioner Manuel P. Alvarez. “On the main one hand, it is motivating to see loan providers conform to their clients’ requirements and objectives. But by the token that is same it underscores the requirement to concentrate on the access and legislation of small-dollar credit items between $300 and $2,500, and particularly credit services and products over $2,500 where you can find mainly no current price caps beneath the CFL. [Read more…]