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Analysis: New State Data Show California Payday Lenders Continue to Rely on Trapping Borrowers in Debt

October 9, 2014
Research

The California Department of Business Oversight (DBO) released data on October 3, 2014 showing the extent to which repeat lending comprises the bulk of payday loan activity. Over 75% of all payday loan fees are from borrowers with 7 or more payday loans in 2013. The Center for Responsible Lending's analysis of DBO's data supports the conclusion that, far from offering a quick financial fix, the industry's practices and its loans are designed to trap borrowers in long-term, unaffordable debt. Payday loans are keeping borrowers locked in a state of financial crisis, pushing safer options further out of reach.