Project News
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May 9, 2013
Payday Loans Explained
Twelve million Americans take out payday loans every year, but there are still misconceptions about how they are actually used. Follow the story of Jennifer, a typical payday loan customer, who takes out a cash advance on her paycheck to make ends meet, but ends up paying more than $500 in fees. more
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April 16, 2013
Sacramento Bee: Editorial: An Incremental Step to Stem Payday Loans
Sacramento Bee edititorial: California's $3.3 billion payday lending industry preys on the poor and the financially unsophisticated. Attempts to rein it in have failed. California remains among the most permissive states when it comes to payday lending. more
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- Press Release
- Safe Small-Dollar Loans Research Project
Pew Survey: Payday Loans Fail to Work As Advertised
A new report from The Pew Charitable Trusts, Payday Lending in America: How Borrowers Choose and Repay Payday Loans, sheds light on the decision 12 million Americans make every year to use a payday loan.
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December 3, 2012
Paying for the Holidays
As the holiday shopping season takes off, consumers are turning to a variety of financial management tools. View our slideshow and learn more about Pew’s research on hidden bank fees, the growing use of prepaid debit cards, and the actual duration of payday loans that are marketed as two-week products.
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- Press Release
- Safe Small-Dollar Loans Research Project
Nationwide Pew Survey Challenges Conventional Wisdom on Payday Loans
Americans spend $7.4 billion per year on payday loans, including an average of $520 in interest per borrower for eight $375 loans or extensions. The Pew Charitable Trusts establishes a new understanding of borrowers and their needs in Payday Lending in America: Who Borrows, Where They Borrow, and Why.
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Media Coverage
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Ohioans Big Users of Payday Lending
The Columbus Dispatch: About 1 in 10 Ohioans has used payday loans in the past five years, among the higher rates in the nation.
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Nine States Where Lenders Take Your Paycheck
Payday loans — small, short term loans secured against a customer’s next paycheck — are highly controversial. A new study from Pew Charitable Trusts explains that opponents believe the practice “preys” on people who, because of the high interest rates
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Payday Profits
The Office of the Comptroller of the Currency, which failed to control the reckless mortgage lending that helped cause the financial crisis, is widely regarded as a pushover among federal regulators. But the agency showed some welcome muscle and concern
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Why to Steer Clear of Payday Loans
Payday loans are meant as a stopgap for the fiscally pinched. But in many cases, these short term loans create a costly cycle of escalating debt. A payday loan is like a cash advance on your paycheck. Marketed as a
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Market Watch: Pew: On Payday Loans, Conventional Wisdom Flawed
New research from the Pew Charitable Trust challenges some of the conventional wisdom on payday loans. Nick Bourke, director of Pew's Safe Small-Dollar Loan Research Project, tells MarketWatch Radio's Adrienne Mitchell about how they are used and what alternatives borrowers have. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Borrowers Use Payday Loans for Ordinary Expenses Not Financial Emergencies, says study
Pew researchers have found that most borrowers who take out payday loans use them to cover ordinary living expenses, not unexpected emergencies -- a finding that contradicts industry advertising that emphasizes payday loans as short-term options to cover financial emergencies. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Alabama Payday Loan User Fees Above National Average, Pew Study Finds
Seven percent of Alabama adults have used a payday lender in the past five years, paying roughly $17.50 for every $100 borrowed on a two-week loan, according to a new national study released today.
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- Media Coverage
- Safe Small-Dollar Loans Research Project
African-Americans, Renters, Divorcees Likely to Use Payday Loans
In many cities, neon "payday loan" signs are ubiquitous in storefront windows and might go unnoticed by most passersby. But a new survey should make more people take notice of who's using those loans, how much they're borrowing, and the costs that can come with quick cash. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Fewer Payday Loans Made in States with Strict Laws: Study Finds
The report, "Payday Lending in America: Who Borrows, Where They Borrow, and Why," is based on an in-depth survey and focus groups with hundreds of payday borrowers around the country, conducted by Pew's Safe Small-Dollar Loan Research Project. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Many Use Payday Loans to Cover Food, Rent
Many people think of payday loans as a way to cover an unexpected emergency – such as a car repair or medical expense – until your next paycheck comes in. But nearly seven in 10 people who use the short-term, high-fee loans rely on them for recurring, everyday expenses such as rent, food, utilities or car payments. more
