Although marketed as a quick financial fix, the long-term debt is the typical borrower experience and the core of the business model. With each loan flip or new loan, borrowers are unable to both repay the lender and have enough money left until the next payday arrives. Payday loans are a debt trap by design and lead to cascade of other financial consequences such as increased overdraft fees and even bankruptcy. A recent trend is for payday lenders to make multi-payment “payday installment” loans, which can be for larger amounts and extend the cycle of high-cost debt even longer.
The Problem
Research & Policy
Comment Letter
November 5, 2020
Research
September 29, 2020
Comment Letter
September 10, 2020
Letters to Congress
September 4, 2020
Letters to Congress
September 3, 2020
Letters to Congress
September 3, 2020
Comment Letter
September 3, 2020
Policy & Legislation
August 24, 2020