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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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  • APR Matters on Payday Loans
    June 23, 2009

    CRL explores the payday lending industry’s attempt to deny the importance of the APR, or annual percentage rate of interest, in disclosing the cost of their 400 percent interest product, which routinely catches borrowers in a cycle of financially devastating long-term debt.

  • Interest Rate Survey
    March 30, 2009

    CRL conducted a national survey to measure public support for one strategy on the table: a 36 percent cap on annual interest rates for consumer loans. The survey found high levels of support for such a measure, which had very little variance across different demographic groups.

  • Predatory Profiling
    March 26, 2009

    New CRL analysis finds that California's payday lenders overwhelmingly locate in African-American and Latino neighborhoods, even after controlling for income and other factors, and drain $247 million in the process

  • Payday Loans Put Families in the Red
    February 20, 2009

    Explains how payday lending does not help borrowers avoid overdraft fees in spite of industry claims.

  • A 36% APR Cap on High-Cost Loans Promotes Financial Recovery
    January 31, 2009

    Explains the importance of a federal 36% interest rate cap in stopping predatory lending and stimulating the economy.

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