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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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  • Effective State and Federal Payday Lending Enforcement: Paving the Way for Broader, Stronger Protections
    Published: Oct 4 2013      Issue: Payday Loans

    The predatory features of payday loans, and the impact of their long-term debt on consumers, have in recent years drawn the attention of legislators and regulators. Policymakers at all levels have...

  • The State of Lending: Payday Loans
    Published: Sep 10 2013      Issue: Payday Loans

    Payday loans—high-cost, quick-fix loans that trap borrowers in debt by design—cost cash-strapped American families $3.4 billion in fees every year. Of that number, more than two-thirds—$2.6...

  • The State of Lending: Bank Payday Loans
    Published: Sep 10 2013      Issue: Payday Loans, Bank Payday Loans

    Even in the face of strong opposition by banking regulators, a few banks continue to make triple-digit payday loans. In this chapter, our analysis shows no meaningful distinction between...

  • Comments to Department of Defense: Expanding Credit Protections for Service Members and Their Families
    Published: Aug 1 2013      Issue: Overdraft Loans, Payday Loans

    Although the Military Lending Act has resulted in significant improvements, Service members continue to be the target of predatory lenders. In 2012, members of the military filed 61,642 complaints...

  • Testimony: Seniors Vulnerable to Predatory Payday Loans
    Published: Jul 24 2013      Issue: Bank Payday Loans, Payday Loans

    Rebecca Borné, senior policy counsel for CRL, testifies on the harms of payday loans and how seniors are particularly vulnerable. The Senate Special Committee on Aging held this hearing to examine...

  • Advocates Support Proposed Restrictions on Bank Payday Lending
    Published: May 30 2013      Issue: Bank Payday Loans, Payday Loans

    CRL and allies urge the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) to implement and strengthen their proposed guidance to restrict "deposit...

  • All Federal Credit Unions Should Shun Payday Lending
    Published: May 16 2013      Issue: Bank Payday Loans, Payday Loans
  • Senate Bill 515 "Reforming Payday Loans"
    Published: Apr 5 2013      Issue: Payday Loans

    California payday loan borrowers get caught in a cycle of repeat borrowing of 459% Annual Percentage Rate (APR) loans. Reforms are necessary to ensure that payday loans serve their advertised...

  • CRL Strongly Supports SB 515 Reforming Payday Loans
    Published: Apr 2 2013      Issue: Payday Loans

    SB 515 includes three principal reforms: it caps the number of payday loans per borrower at four per year; extends the minimum term of a payday loan, so that borrowers will have more time to...

  • Triple-Digit Danger: Bank Payday Lending Persists
    Published: Mar 21 2013      Issue: Bank Payday Loans, Payday Loans

    Banks making payday loans continue to trap customers in a cycle of debt, according to a CRL study, "Triple-Digit Danger: Bank Payday Lending Persists." Banks pitch payday loans as short-term...

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