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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- Wealth-stripping payday loans trouble communities of color
October 2, 2008An examination of payday lending storefront locations in Maricopa and Pima Counties—in which over three-quarters of Arizona payday lenders are located—reveals a pattern of these stores clustering in communities of color.
- High-Cost Payday Lending Traps Arizona Borrowers
September 16, 2008CRL looks at payday lending in Arizona, where $149 million per year are stripped from working families in unfair payday lending fees.
- Ohio Payday Hearing
May 7, 2008Testimony of Uriah King, Center for Responsible Lending before the Ohio Senate Finance and Financial Institutions Committee
- Comment: Implementation of Military Lending Amendment
February 26, 2008Comments on Implementation of Limitations on Terms of Consumer Credit Extended to Service Members and Dependents
- Springing the Debt Trap
December 13, 2007CRL analysis of states that have tried to reform payday lending, finding that only the 36% rate cap has worked.
