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 Lenders Target the Military
September 30, 2005
Predatory payday lending costs military families over $80 million in abusive fees every year.
- Race Matters: The Concentration of Payday Lenders in African-American Neighborhoods in North Carolina
March 22, 2005
- FDIC's Revised Examination Guidance on Payday Lending
March 14, 2005
Analysis of the FDIC guidance that stopped the "rent-a-charter" scheme that payday lenders were using to operate in states where they were illegal. FDIC issued strict guidelines under which their insured banks could partner with payday lenders.
- Access Denied: Payday Loans are Defective Products
January 5, 2005
Payday lenders offer defective product, claiming if fills need for access to credit
- Fact v. Fiction: The Truth about Payday Lending Industry Claims
January 1, 2001
With huge profits at stake, the payday lending industry is fighting reform efforts by positioning itself as "consumer friendly," misrepresenting the facts, and circumventing state laws.