Payday Loans | Issues

HOT TOPICS

Coalition comments to the Consumer Financial Protection Bureau re: Proposed Rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans, Oct. 7, 2016
National consumer and civil rights groups urge CFPB to strengthen payday and car title lending rule, Oct. 7, 2016
Misaligned Incentives: Why High-Rate Installment Lenders Want Borrowers Who Will Default, July 2016
Installment Loans: Will States Protect Borrowers from a New Wave of Predatory Lending?, July 2015
Op-Ed: Colorado Is No Model for a National Payday Rule, Dec. 2014
Guidelines for Affordable Small Dollar Loans, January 2014
Why 36%? The History, Use, and Purpose of the 36% Interest Rate Cap Report
Supreme Court decision strikes blow on tribal payday loans - Press Release

Policy Briefs, Reports and Press Releases || Letters || Comments

Marketed as a way to help consumers pay the bills until their paychecks arrive, payday loans trap consumers in terrible cycles of debt, dragging their families more deeply into financial crisis. In return for a loan the consumer provides the lender a post-dated check for the amount borrowed plus a fee. The check is held for one to four weeks (usually until the customer’s payday) at which time the customer redeems the check by paying the face amount or allowing the check to be cashed. Payday lenders encourage their customers to get on a debt treadmill by refinancing one payday loan with another. The fees for payday loans are exorbitant with effective interest rates that can top 1,000 percent.

The repeal of usury laws has allowed payday loans and other predatory lending to flourish.

Policy Analysis

Policy Briefs, Reports & Press Releases

National consumer and civil rights groups urge CFPB to strengthen payday and car title lending rule, Press release, Oct. 7, 2016
Misaligned Incentives: Why High-Rate Installment Lenders Want Borrowers Who Will Default, July 2016
Joint consumer group statement on CFPB's proposed payday rule, June 20, 2016
CFPB Proposes Strong Rules to Protect Payday Borrowers Yet Worrisome Loopholes Need Tightening, Press release, June 2, 2016
First Possible Tech IPO of Year: Elevate Pushes Predatory Long-Term Payday Loans, Press release, Jan. 20, 2016
Report: Installment Loans: Will States Protect Borrowers from a New Wave of Predatory Lending?, July 2015
Report & Press Release: Payday Lender Prepaid Cards: Overdraft and Junk Fees Hit Cash-Strapped Families Coming and Going, July 15, 2015
More policy briefs, reports & press releases >>>

Letters

Letter to Senator Sharon Nelson re: WA HB 1922, SB 5889, high-cost consumer installment loans, Feb. 24, 2015
Coalition letter to CFPB re: proposed payday lending rules to better protect consumers, Oct. 23, 2014
Letter to House of Representatives supporting Operation Choke Point and other work against payment fraud, July 15, 2014
Letter to Senate urging support for Operation Choke Point and other efforts against payment fraud, June 18, 2014
Letter to CFPB urging a strong rule on payday loans, March 28, 2014
Letter to DOJ applauding work against payment fraud (including illegal payday payments), Jan. 14, 2014
More letters >>>

Comments

Comments to OCC opposing new fintech lending charter that would preemption state interest rates and other laws, Nov. 14, 2016
Comments to CFPB in response to request for information about installment loan practices, Nov. 7, 2016
Coalition comments to the Consumer Financial Protection Bureau re: Proposed Rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans, Oct. 7, 2016
Consumer comments in support of draft California regulations to strengthen payday loan regulations, June 24, 2015
Comments to Department of Defense on limitations on terms of consumer credit extended to service members and departments, Dec. 23, 2014
Comments to California on the role of electronic payments, remotely created checks and prepaid cards in making payday loans, May 19, 2014
More comments >>>

Payday Policy Analysis Archive