Research & Analysis
The payday lending industry frequently supports what they call reform of their own industry in state legislative battles, because they know that most of the measures in debate will not slow the rate at which they can make repeat payday loans to the same borrower. Our report, Phantom Demand, shows how the industry depends on “churned” borrowers, those who have to take a new loan before their next payday, for three quarters of their business.
In public, payday lenders say their loans are for infrequent use. In private, they say things like this: "The theory in the business is you've got to get that customer in, work to turn him into a repetitive customer, long-term customer, because that's really where the profitability is." (Dan Feehan, CEO of Cash America, remarks made at the Jeffries Financial Services Conference, 6-20-07)
- Mainstream banks making payday loans
February 24, 2010 - Phantom Demand: Short-term due date generates need for repeat payday loans, accounting for 76% of total volume
July 9, 2009 - APR Matters on Payday Loans
June 23, 2009 - Interest Rate Survey
March 30, 2009 - Predatory Profiling
March 26, 2009 - Payday Loans Put Families in the Red
February 20, 2009 - A 36% APR Cap on High-Cost Loans Promotes Financial Recovery
January 31, 2009 - Wealth-stripping payday loans trouble communities of color
October 2, 2008 - High-Cost Payday Lending Traps Arizona Borrowers
September 16, 2008 - Ohio Payday Hearing
May 7, 2008
