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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- CRL Review of "Defining and Detecting Predatory Lending" by Donald P. Morgan, Federal Reserve Bank of NY, January 2007
January 23, 2007
CRL critiques faulty research report by Don Morgan, which attempts to compare states with and without payday lending but misidentifies many of those states.
- Financial Quicksand: Payday lending sinks borrowers in debt with $4.2 billion in predatory fees every year
November 30, 2006
CRL research report finds that payday lending costs Americans $4.2 billion per year in fees.
- Georgia's Payday Loan Law: A Model for Preventing Predatory Payday Lending
June 29, 2006
Brief analysis of Georgia's law preventing payday lenders from circumventing their consumer credit interest rate cap and other protections.
- An Attack without Merit
February 14, 2006
Payday loan industry pays Prof. Thomas Lehman to challenge CRL’s research, but none of his criticisms are accurate.
- Comments: RIN 3064-AC95, Proposed Rulemaking on Federal Preemption
December 13, 2005
The Center for Responsible Lending submits these comments on the proposed rules, ere part of a larger package of preemption rules urged upon the FDIC by the Financial Services Roundtable.