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)
- Comment: Implementation of Military Lending Amendment
February 26, 2008 - Springing the Debt Trap
December 13, 2007 - Springing the Debt Trap-Exec Summary
December 13, 2007 - CRL Critique of “Payday Holiday: How Households Fare After Payday Credit Bans” by Donald P. Morgan and Michael R. Strain
December 10, 2007 - The Payment Plan Smokescreen
June 4, 2007 - Comment: To Department of Defense on Military Lending Act
February 8, 2007 - Small Loan CRA Comment
February 2, 2007 - CRL Review of "Defining and Detecting Predatory Lending" by Donald P. Morgan, Federal Reserve Bank of NY, January 2007
January 23, 2007 - Financial Quicksand: Payday lending sinks borrowers in debt with $4.2 billion in predatory fees every year
November 30, 2006 - Georgia's Payday Loan Law: A Model for Preventing Predatory Payday Lending
June 29, 2006
