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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- Payday Loans, Inc: Short on Credit, Long on Debt
Published: Mar 31 2011 Issue: Payday Loans
New CRL research tracking borrowers over two years dispels the notion that a payday loan is a short-term debt. Although marketed and advertised as a quick solution to an occasional financial...
- The NC Consumer Finance Act Needs No Adjustment
Published: Mar 1 2011 Issue: Payday Loans
The Center for Responsible outlines the main reasons the North Carolina Consumer Finance Act needs no further adjusting.
- San Jose Payday Lending Poll
Published: Feb 23 2011 Issue: Payday Loans
- Military and Payday
Published: Nov 22 2010 Issue: Payday Loans
Military and Payday: Congress acted to protect military families from this predation by including a measure in the Defense Authorization Act of 2006 that prohibits payday and title lenders from...
- Map of US Payday Stores per Household
Published: Nov 1 2010 Issue: Payday Loans
This color-coded map of payday stores by household reveals a disturbing pattern. Southern states are among the most targeted for these high-cost, low-dollar loans.
- Summary of the Military Lending Act of 2007
Published: Oct 22 2010 Issue: Payday Loans
CRL summarizes the provisions of the Military Lending Act, which restricted the APR for certain types of loans to military personnel to 36%. The MLA covers payday loans, car title loans and refund...
- High-Cost Payday Lending Traps Mississippi Borrowers
Published: Jul 26 2010 Issue: Payday Loans
The state of Mississippi is gearing up for a legislative battle as the expiration of a law approaches in 2012. If the law sunsets as scheduled, payday lenders will no longer be exempt from a 36...
- Payday lenders pose as brokers to evade interest rate caps
Published: Jul 16 2010 Issue: Payday Loans
In recent years, a growing number of states have enacted interest rate caps and other protections to eliminate abusive payday lending practices that trap consumers in long term debt. Payday lenders...
- Comments on NCUA's Notice of Proposed Rulemaking on Short-term, Small Amount Loans
Published: Jul 6 2010 Issue: Payday Loans
Comments of the Center for Responsible Lending on the Notice of Proposed Rulemaking on Short-term, Small Amount Loans from National Credit Union Administration--12 CFR Part 701--RIN 3133-AD71....
- Mainstream banks making payday loans
Published: Feb 24 2010 Issue: Payday Loans
National bank regulator, the OCC, must stop this trend before it takes off among more national banks, making millions vulnerable to predatory loans even in states that don't allow it from payday...