Question

these institutions are popular with those who have poor credit ratings, but offer only high interest rates whose maximums are state-regulated.

Answer 1

Consumer Finance Companies

Step-by-step explanation:

Consumer finance companies are also referred to as small loan companies. Their borrowers typically have trouble getting loans elsewhere due to poor credit ratings and are greater risks than many other borrowers. As such, borrowers are subject to higher interest rates. To prevent these companies from taking unfair advantage of their customers, state governments set interest-rate caps on how much they can charge. Loans are usually $5,000 or less.