Knowledge Tree
payday lenders
Facts (13)
Sources
The Impacts of Individual and Household Debt on Health and Well ... apha.org Oct 25, 2021 9 facts
claimAfter payday lenders have been banned in different states, there have not been increases in loan sharks, and new businesses have moved into previous payday loan storefronts.
claimBlack and Hispanic women are more likely to use payday lenders as a last resort because they are more likely to lack a mainstream bank account compared to other groups.
perspectiveThe American Public Health Association (APHA) policy brief recommends that banks stop creating markets for payday lenders by declining to serve low-income consumers while simultaneously extending corporate financing to payday lenders and alternative financial service companies.
claimAfter payday lenders have been banned in different states, there have not been increases in loan sharks, and new businesses have moved into previous payday loan storefronts.
claimBlack and Hispanic women are more likely to use payday lenders as a last resort because they are more likely to lack a mainstream bank account compared to other groups.
perspectiveSome argue that reducing access to payday lenders is detrimental to the well-being of individuals with lower incomes because they may face challenges covering unexpected expenses.
perspectiveThe American Public Health Association advises that banks should not create markets for payday lenders by declining to serve low-income consumers while simultaneously extending corporate financing to payday lenders and alternative financial service companies.
perspectiveSome argue that reducing access to payday lenders is detrimental to the well-being of individuals with lower incomes because they may face challenges covering unexpected expenses.
claimSome public pension funds own payday lenders that operate in states where such lending is illegal, as reported by D. Primack in Fortune on April 20, 2015.
Predatory Lending — An Explainer - MECEP mecep.org Mar 24, 2023 4 facts
measurementIn 2021, the number of payday lenders in the United States exceeded the number of McDonald's locations.
measurementPayday lenders derive 75 percent of their fee revenue from borrowers who take out ten or more loans per year.
measurementMaine law allows payday lenders to charge recurring fees every two weeks for the duration of a loan, which can effectively increase the annual interest rate on a $250 loan from 30 percent to 261 percent over six months.
claimThe business model of payday lenders is based on trapping borrowers in debt.