Research

Morning Consult conducted a survey, commissioned by Center for Responsible Lending, of approximately 10,000 registered voters. The results are presented in categories as short Powerpoint-style slide decks with key takeaways, charts, and maps. Dangers of Rent-a-Bank Schemes Bipartisan Support for Stopping Predatory High-Interest Loans Broad Support for Interest Rate Cap Among Payday Loan Borrowers

New Jersey has long been a national leader in the fight against predatory lending which strips wealth from communities. Strong state usury laws protecting New Jerseyans from payday lending in the state save New Jerseyans over $193 million annually. New Jerseyans continue to overwhelmingly support a rate cap on payday and consumer installment loans and want to ensure the strong state laws preventing abusive practices by lenders cannot be evaded.

If Treasury and FHFA release the GSEs from conservatorship, they should continue the return-regulated approach FHFA has used effectively in conservatorship. Utility-like regulation would allow the GSEs to continue to operate at low risk and in a way that provides broad access to affordable mortgage credit nationwide. Removing that check on GSE returns on equity would lead to greater risk and less systemic stability, less pooling of risk and access to credit, and higher prices for America’s homebuyers. Download the full report above or download a 2-page factsheet. Utility-like regulation will...

Morning Consult conducted a survey, commissioned by Center for Responsible Lending, of approximately 10,000 registered voters. The poll is presented as a short Powerpoint-style slide deck with key takeaways, charts, and maps. This poll presentation is linked to above and here. Key findings include: An overwhelming majority (82%) of those who have taken out payday loans support an annual interest rate cap on payday loans of 36%. Sixty-four (64%) of those who have taken out a payday loan “strongly support” a rate cap. Those who have taken out a payday loan are the greatest supporters of rate...

Georgia has long been a national leader in the fight against predatory lending, imposing strict usury limits on small loans. In 2004, Georgia legislators closed loopholes used by payday lenders to charge triple-digit interest rates; they reaffirmed their commitment to keeping payday lending out by increasing fines and criminal penalties for making small loans at illegal interest rates. These laws save Georgians over $284 million annually. Georgians are also concerned about other high-cost loans like car-title lending, in which lenders charge annual interest rates of up to 300%. A 2019 poll...

In South Carolina, payday and car-title lenders charge working families 395% interest, creating a debt trap that can keep South Carolina families in a cycle of debt for years. In fact, these lenders drain more than $245 million from South Carolinians, primarily from low-income families and communities of color. South Carolinians want reform that has been proven to stop the debt trap—a true rate cap on payday loans that repeals the ability of payday lenders to charge the high rates and restores a maximum limit of 36%.

For most of Michigan’s history, state laws prevented payday lenders from operating, most recently by limiting interest on consumer loans at 25%. However, in 2005, Michigan became the last state to authorize payday lending when payday lenders pushed for a carve out allowing them to charge rates of 340% APR or higher. Payday lenders drain over $103 million in fees from Michigan residents every year. Now, they want the ability to make longer-term loans at APRs as high as 200%. Michiganders do not want payday lending to expand. Instead, Michigan needs reform proven to stop the debt trap—a true...

Morning Consult conducted a survey, commissioned by Center for Responsible Lending, of approximately 10,000 registered voters. The poll is presented as a short Powerpoint-style slide deck with key takeaways, charts, and maps. Key findings include: Two-thirds of voters (66%) are concerned about the ability of high-cost lenders to arrange loans through banks at rates higher than the state laws allow. One in three Republicans, independents and Democrats are strongly concerned about this practice. Across all 50 states and the District of Columbia, a majority (60-69%) of the population is concerned...

Morning Consult conducted a survey, commissioned by Center for Responsible Lending, of approximately 10,000 registered voters. The poll is presented as a short Powerpoint-style slide deck with key takeaways, charts, and maps. This poll presentation is linked to above and here. Key findings include: Seventy percent (70%) of voters support a 36% annual interest rate cap on payday and consumer installment loans. Over half (52%) of voters “strongly support” a 36% rate cap on payday loans. Similarly, forty-one percent (41%) of voters “strongly support” a 36% cap on consumer installment loans. The...

What is a “Rent-a-Bank” scheme? In the 1990s-mid 2000s, predatory lenders partnered with banks to evade state interest rate caps. In response, federal regulators, the FDIC and OCC, cracked down on this practice. Now, under the Trump Administration, this scheme is reemerging and going unchecked. In fact, the FDIC and OCC have issued proposed rules that could bless this practice, allowing predatory lenders to issue loans of more than 100% APR in states that have interest rate caps of much less, often around 36%. Download this factsheet to learn how the rent-a-bank scheme works. (PDF)