U.S. Bank recently introduced an innovative new loan product that is small-dollar. By the bank’s description that is own it is a high-cost item, at 70-88% APR.

High-cost loans by banks give you a mirage of respectability. A factor of the impression may be the misguided indisputable fact that limiting payment size to 5% of revenues means the mortgage is affordable for many borrowers. However these items is going to be unaffordable for all borrowers and finally erode defenses from predatory financing throughout the board.