Consumer Credit Regulation: 5.9.4 Small Loan Example
Here is an example of how it works.624 A Pennsylvania consumer made a retail purchase for $747 on a “90-day same as cash” basis. The seller assigned the paper to a finance company, a common introduction to finance company borrowing. Over the course of the next six years, the consumer received approximately $6,000 from eleven separate advances, each of which was accomplished through a refinancing. Each of the advances was a small sum, less than $1,000.