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)
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- FDIC's Revised Examination Guidance on Payday Lending
Published: Mar 14 2005 Issue: Payday Loans
Analysis of the FDIC guidance that stopped the "rent-a-charter" scheme that payday lenders were using to operate in states where they were illegal. FDIC issued strict guidelines under which their...
- Access Denied: Payday Loans are Defective Products
Published: Jan 5 2005 Issue: Payday Loans
Payday lenders offer defective product, claiming if fills need for access to credit
- Payday lenders cannot avoid state laws by partnering with banks
Published: Apr 23 2004 Issue: Payday Loans
CRL's amicus brief in support of Georgia Attorney General Baker in Bankwest v. Baker. CRL argues that the Federal Deposit Insurance Act does not provide payday lenders with the benefit of...
- Small Loans, Big Bucks: An Analysis of the Payday Lending Industry in N.C.
Published: Jan 1 2002 Issue: Payday Loans
- Fact v. Fiction: The Truth about Payday Lending Industry Claims
Published: Jan 1 2001 Issue: Payday Loans
With huge profits at stake, the payday lending industry is fighting reform efforts by positioning itself as "consumer friendly," misrepresenting the facts, and circumventing state laws.