 When a lender sells more credit life insurance than is required to pay off the loan, the cost of the premiums is inflated along with the amount of the loan, which increases the amount of interest charged and the amount the consumer has to repay.Terms and conditions for loan APR and fees vary from state to state and some are comparatively vague.For states that do not cap interest rates for installment loan balances, there are often unconscionable provisions in place.