Pew's Safe Small-Dollar Loans Research Project focuses on conducting research that demonstrates the needs, perceptions, and motivations of consumers, as well as the impacts of market practices and potential regulations. Based on this research, the project puts forth policy recommendations designed to protect consumers from harmful practices and promote safe and transparent small-dollar credit.
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RESEARCH from the Project
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- Issue Brief
- Safe Small-Dollar Loans Research Project
Guidance on Deposit Advance Products
Enclosed are comments on guidance that the FDIC and OCC (the Agencies) have proposed regarding deposit advance loans. As your guidance recognizes, the essential issue is the borrower's ability to repay. Deposit advance loans unrealistically require lump-sum repayments that far exceed most borrowers' financial capacity. The predictable result is that customers are unable to repay the loans and meet their other financial obligations, resulting in prolonged periods of renewing or re-borrowing. more
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May 23, 2013
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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- Infographic
- Safe Small-Dollar Loans Research Project
Payday Loans Do Not Eliminate Checking Account Overdrafts
Payday lenders often advertise their loans as a way to avoid expensive checking account overdrafts. Research shows most borrowers end up paying fees for both. 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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- Infographic
- Safe Small-Dollar Loans Research Project
Infographic: Payday Loans and Tax Time
How do payday loan borrowers use their tax refund? Pew has shown that payday loans are used for long term expenses instead of emergencies, and that many payday borrowers end up paying off their balances with a cash windfall. more
