Project News
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Yesterday
Payday Loans: Who Uses Them and Why?
Follow the story of Jennifer, a typical payday loan customer who takes out a cash advance and ends up borrowing from her parents to pay it back, an option she could have used initially, instead of taking out a loan. more
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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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Media Coverage
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Akron Beacon Journal: Convenient Trap
The Pew Charitable Trusts issued a report on payday-loan borrowers in February that said: “The choice to use payday loans is largely driven by unrealistic expectations and by desperation. Borrowers perceive the loans to be a reasonable short-term choice but express surprise and frustration at how long it takes to pay them back.” more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Philadelphia Inquirer: CFPB: Payday Loans Leading to 'Revolving Door of Debt'
Short-term "payday" loans, and similar "deposit advance" loans offered by major banks, are trapping many consumers in a "revolving door of debt," according to a study due by the Consumer Financial Protection Bureau. The CFPB's study echoes findings in a February report by the Pew Charitable Trusts' Safe Small Dollar Loans Research Project. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Los Angeles Times: Bill Would Limit Number of Payday Loans to Any One Borrower
A bill before the California Legislature would restrict the number of payday loans to any one borrower — an attempt to break the "debt cycle" that ensnares some of the state's poorest residents. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
National Journal: The Online Lenders That Could Break the Payday Loan Racket
A cohort of startups like Spotloan, LendUp, and FairLoan think they can provide people living paycheck-to-paycheck with a better source of credit. And they’re processing reams of personal data to identify reliable borrowers and create loan structures that they hope can guide people living on the financial margins into the financial mainstream. more
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- Media Coverage
- Safe Small-Dollar Loans Research Project
Washington Post: Big Banks Engaging in Payday Lending, Report Says
Some of the nation’s largest banks are providing short-term loans with interest rates of up to 300 percent, driving borrowers into a cycle of debt, according to a new report from the Center for Responsible Lending. more
