U.S. Bank, among the nation’s biggest banking institutions, has once again started offering clients tiny, high-cost loans, saying the loans will have safeguards to hold borrowers from getting into over their minds.
The loans, between $100 and $1,000, are designed to help clients cope with unanticipated costs, like a motor vehicle fix or a bill that is medical stated Lynn Heitman, executive vice president of U.S. Bank customer banking product product sales and help. However the charges equal a yearly rate of interest of approximately 70 per cent.
The loans had been intended to be an alternate to payday advances, the tiny, short-term, very-high-cost loans — with interest levels often because high as 400 percent — that typically needs to be paid back in full through the debtor’s next paycheck.