Prosper-Cda-Submission-predatory-lending-and-affordable-credit-Jan-7-

6 months for a loan under $500, one year for loans up to $3,000) to allow for more manageable payments • Faster repayment is permitted and encouraged and does not trigger any associated fees • Applicants are screened to ensure ability to repay without hardship before approving the loan • Applicants who are not approved for a loan are referred to free financial help services to explore other option. [...] Currently, most consumers – and vulnerable consumers most of all – lack the time and capacity to parse through lengthy loan agreements to extract the critical information they need to determine the most affordable and suitable product for them. [...] Barriers to banks and credit unions offerings low-cost, small-value credit People who are not eligible for mainstream credit, but need access to affordable, small- dollar loans, are more likely to need hands on support to successfully apply and repay their loan – e.g., help with paperwork, screening to ensure ability to repay, help to build a robust budget and repayment plan, and financial coachin. [...] The federal government could provide loan loss guarantees to banks and credit unions to de-risk their participation, and potentially also absorb some or all of the interest costs to enable participating non-profits to offer loans at no or low interest rates to eligible borrowers. [...] Improving enforcement of the criminal rate of interest Relying on the police to enforce the Criminal Rate of Interest is not effective in most cases due to the many pressing competing priorities for their time and resources.