Payday Lenders Evading Rules Pivot to Installment Loans

For three years, payday lenders have been bracing for dedicated scrutiny from a U.S. agency for the first time. One way they’re getting ready: switching to loans designed to fall outside the regulator’s grasp.

Companies including Cash America International Inc. and Advance America Cash Advance Centers Inc. are increasingly selling longer-term installment loans to avoid rules the Consumer Financial Protection Bureau may impose on their shorter-term products.