Survey Finds Payday Borrowers Suffering Financial Hardships
Washington, DC - A survey of Detroit households suggests payday loans are no solution for those in financial need. The survey by University of Michigan law professor Michael S. Barr found that respondents using payday loans were more likely to file for bankruptcy, be evicted, or face utility shut-offs than respondents who had not taken a payday loan. Payday lenders have long argued that their loans are helpful to people who can't quite make it to their next paycheck, but research from the Center for Responsible Lending, based on data from state regulators and the payday lending industry itself