§5624 Low-cost alternatives to small dollar loans

Summary

The Secretary can run multi-year test programs that give grants or make contracts with eligible groups so they can offer low-cost small loans as alternatives to more expensive short-term loans. Those loans must use fair terms for consumers. Groups that get grants must promote and try to make sure each borrower gets financial education, like counseling, classes, or wealth-building programs. The Secretary can also set up reasonable programs to broaden access to those education services for people who get these loans.