Research & Analysis

Print this    

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)

Search Payday Lending - Research & Analysis
Loading
Browse Payday Lending - Research & Analysis

Items 51 - 60 of 100  Previous12345678910Next
  • Phantom Demand: Short-term due date generates need for repeat payday loans, accounting for 76% of total volume
    Published: Jul 9 2009      Issue: Payday Loans

    CRL analysis reveals that a sizeable majority of payday lending volume is generated by payday debt itself—borrowers need to open a new loan shortly after repaying a previous loan because repayment...

  • La Demanda Fantasma de Payday Loans
    Published: Jul 9 2009      Issue: Payday Loans

    Este análisis revela que la gran parte del volumen de los préstamos de “payday” hechos es generado por la deuda causada por el mismo préstamo y no por la necesidad del producto.

  • Financial Reform that Protects Consumers
    Published: Jun 25 2009      Issue: Auto Financing, Car Title Loans, Credit Cards, Mortgage Lending, Overdraft Loans, Payday Loans, Refund Anticipation Loans

    For years, federal bank regulators looked the other way; now Congress has a chance to reform our system of checks and balances, make banks accountable, and protect consumers from abusive financial...

  • Financial Reform that Protects Consumers
    Published: Jun 25 2009      Issue: Auto Financing, Car Title Loans, Credit Cards, Mortgage Lending, Overdraft Loans, Payday Loans, Refund Anticipation Loans

    For years, federal bank regulators looked the other way; now Congress has a chance to reform our system of checks and balances, make banks accountable, and protect consumers from abusive financial...

  • Regulatory Restructuring: Enhancing Consumer Financial Products Regulation
    Published: Jun 24 2009      Issue: Auto Financing, Car Title Loans, Consumer Financial Protection Bureau, Credit Cards, Mortgage Lending, Overdraft Loans, Payday Loans, Refund Anticipation Loans

    Kathleen Keest, Senior Policy Counsel at CRL, testified before the House Financial Services Committee on CRL's support for a strong, state-of-the-art consumer protection agency for financial...

  • Payday Loans: A Stepping Stone to Debt, Reduced Credit Options and Bankruptcy
    Published: Jun 24 2009      Issue: Payday Loans

    Collection of research studies on payday lending that counter the argument that the absence of payday loans cause bankruptcy and suggest that access to payday loans increases the likelihood that...

  • APR Matters on Payday Loans
    Published: Jun 23 2009      Issue: Payday Loans

    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...

  • AB 377: Do Californians Need $500 Payday Loans?
    Published: Jun 18 2009      Issue: Payday Loans
  • Payday Lending and the Debt Trap in California
    Published: May 31 2009      Issue: Payday Loans

    Payday lending—the provision of 459% APR loans to cash-strapped borrowers—drains more than $450 million from California’s pockets every year.

  • Testimony of Kathleen Keest In Regards To HR 2309
    Published: May 12 2009      Issue: Auto Financing, Credit Cards, Financial Literacy, Overdraft Loans, Payday Loans

    Testimony of Kathleen E. Keest on behalf of the Center for Responsible Lending, Consumer Federation of America, and the National Consumer Law Center before the Subcommittee on Commerce, Trade and...

Items 51 - 60 of 100  Previous12345678910Next