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Fact v. Fiction: The Truth about Payday Lending Industry Claims

January 1, 2001
Payday Loans

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.

Claim 1: Payday loans provide needed emergency credit.
Claim 2: Payday lenders serve the working middle class.
Claim 3: Customers understand the cost of this service.
Claim 4: Payday loans are cheaper than other alternatives.
Claim 5: Fees are high because these loans are risky.
Claim 6: Most consumers use payday loans responsibly.
Claim 7: Consumers oppose any limits on payday lending.
Claim 8: The payday industry is already highly regulated.