University of New Mexico School of Law
             Albany Law School

A Comprehensive Study of the Payday Loan Industry
July 2012

The Pew Charitable Trust's
"Payday Lending in America: Who Borrows,
Where They Borrow, and Why"
From the report:
  • Payday loan borrowers spend approximately $7.4 billion
  • 20,000 storefronts and hundreds of websites
  • 5.5 percent of ALL adults nationwide used a payday loan
    in the past five years
  • 75% of borrowers went to storefront lenders and nearly
    one-quarter went online.
  • State regulatory data show that borrowers take out eight
    payday loans a year.
  • 55%, of payday loan borrowers are white, and 52% are
  • Borrowers are employed, white, female, and 25 to 44
    years old
  • 69% use these loans to pay for a recurring expense, like
    rent, a mortgage, utilities, credit card payments or food
Read the Executive Summary
Read the Full Report
'The Safe Small-Dollar Loans
Research Project' Overview
Infographic on Payday Lending in America
A Short History of Payday Lending Law

    For 48% of new payday loans, borrowers paid them off with either one or no
    renewals, the study found. But 22% of loans were renewed at least six times.

    Our central concern here is not with every payday loan
    made to a consumer,” Mr. Cordray said. “Some such loans should be available.
    Our concern instead is that all too often those loans lead to a perpetuating
    The CFPB is currently deliberating how to structure regulations for the payday
    loan industry and will likely unveil a proposal later this year.

    The industry and regulators are trying to determine how the regulator’s actions
    could impact industry that made around $46 billion in loans last year.
    Jaret Seiberg, an analyst with Guggenheim Partners, said in
    a note to clients the agency is likely to limit some consumers’ ability to roll over
    loans into new ones. The agency may allow borrowers to convert payday loans
    into longer-term loans, known as “installment loans,” Mr. Seiberg said.
Interactive: State
Payday Loan
Regulation and
Usage Rates
Payday Lending in

June 6, 2019