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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
    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...

  • Interest Rate Survey
    Published: Mar 30 2009      Issue: Car Title Loans, Payday Loans

    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...

  • Predatory Profiling
    Published: Mar 26 2009      Issue: Payday Loans

    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...

  • Perfil Predatorio en California
    Published: Mar 26 2009      Issue: Payday Loans

    Este informe revela que la composición racial y étnica de un vecindario es el factor principal que determina la ubicación de los negocios de préstamos del día de pago en California.

  • Predatory Profiling
    Published: Mar 26 2009      Issue: Payday Loans

    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...

  • Payday Loans Put Families in the Red
    Published: Feb 20 2009      Issue: Overdraft Loans, Payday Loans

    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
    Published: Jan 31 2009      Issue: Payday Loans

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

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