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)
- An Attack without Merit
February 14, 2006 - Comments: RIN 3064-AC95, Proposed Rulemaking on Federal Preemption
December 13, 2005 - Payday Lenders Target the Military
September 30, 2005 - Race Matters: The Concentration of Payday Lenders in African-American Neighborhoods in North Carolina
March 22, 2005 - FDIC's Revised Examination Guidance on Payday Lending
March 14, 2005 - Access Denied: Payday Loans are Defective Products
January 5, 2005 - Fact v. Fiction: The Truth about Payday Lending Industry Claims
January 1, 2001
