Harmful single-payment payday loans remain accessible in over half of the United States. Single-payment payday loans are small loans, often $500 or less, that are typically repaid in full at or within 14 days after their disbursement. Payday lenders charge exorbitant fees to borrowers without assessing their ability to repay, and the annual interest rates on these loans are in the triple digits. Over a decade of research demonstrates payday loans frequently lead to a continuous cycle of debt. Researchers at the Consumer Financial Protection Bureau (CFPB) found that payday lenders collect 75% of their fees from borrowers with more than 10 loans per year, demonstrating that their business model is dependent on this long-term cycle of debt.

Annual Percentage Rates on $400, Single-Payment, Triple-Digit Payday Loans in the U.S.