Consumer alert: watch out for high-cost loans and buy now, pay later pitfalls
CoPIRG teamed up with the Center for Responsible Lending (CRL) to issue a consumer alert including new data on high-cost "supervised loans" in Colorado and tips to avoid Buy Now, Pay Later traps.
With many Coloradans’ budgets stretched thin this holiday season, a new report from the Center for Responsible Lending (CRL) cautions people who may consider taking out a loan to pay for expensive products.
CRL’s new report, Upsold and Weighed Down, found that one type of financial product, “supervised” installment loans, come packed with fees for low-value, high-cost add-on products that are not included in the loans’ APRs, but can add hundreds of dollars onto borrowers tabs.