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Data on Earned Wage Advances and Fintech Payday Loan “Tips” Show High Costs for Low-Wage Workers

April 10, 2023

Data collected by the California Department of Financial Protection and Innovation (DFPI) on earned wage advances and other fintech payday loans show a cycle of repeat use and high costs typical of traditional payday loans. DFPI analyzed data covering nearly 6 million transactions by California consumers from seven companies. Three companies had a tip-based model…

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State Rate Caps for $500 and $2,000 Loans

June 1, 2022

Bar graphs showing the Annual Percentage Rate Caps for $500 and $2,000 Loans

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What States Can Do to Help Consumers: High Cost Loans

March 15, 2022

The debt trap caused by short-term payday loans is well known. Payday and car title lenders are now increasingly moving into high-cost longer-term installment loans and lines of credit that can be a deeper and longer debt trap. Both short- and longer-term payday and title loans rely on high interest rates and coercive tactics to…

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After Payday Loans: Consumers Find Better Ways to Cope with Financial Challenges

March 1, 2022

Payday lenders and high-cost installment lenders offer fast cash loans that do far more harm than good, adding to rather than alleviating financial distress. As a growing number of states have curtailed high-cost lending, experience shows that people are better off and find better options. The American public, on a bipartisan basis, strongly supports capping…

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Instead of Predatory Loans, a Variety of Strategies Can Help People to Address Budget Shortfalls

February 1, 2022

The Veterans and Consumers Fair Credit Act will cap interest on personal loans at 36%. Predatory, high-interest loans do not help people, they only put people deeper in debt and make problems worse. There are no easy answers to not having enough money, but consumers can and already do make use of a wide range of safer and more affordable options when times are tough.

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Federal Ability-To-Repay Requirements for Small Dollar Loans

November 1, 2021

Underwriting for the ability to repay is at the core of responsible lending. For small-dollar lending and other forms of non-mortgage lending, these are some of the applicable federal statutes, regulations, and guidances that address appropriate underwriting to ensure responsible lending.

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Search Results

Data on Earned Wage Advances and Fintech Payday Loan “Tips” Show High Costs for Low-Wage Workers

State Rate Caps for $500 and $2,000 Loans

What States Can Do to Help Consumers: High Cost Loans

After Payday Loans: Consumers Find Better Ways to Cope with Financial Challenges

Instead of Predatory Loans, a Variety of Strategies Can Help People to Address Budget Shortfalls

Federal Ability-To-Repay Requirements for Small Dollar Loans