Experts Warn on App-Based Payday Lending

Experts Warn on App-Based Payday Lending

Consumer advocates are raising alarms about the payday lending industry’s transition to smartphone apps, which offer short-term, high-cost loans repayable on the next payday through simple screen taps. In Maryland, where regulations cap annual interest on traditional payday loans at 33 percent, some apps circumvent these limits by imposing multiple fees, potentially trapping users in cycles of debt. The Consumer Financial Protection Bureau issue…