Phantom Demand: Unfair Payday Loan Terms Generate Most of Loan Volume
Washington, DC - A full three quarters of the payday industry's loan volume is generated by borrowers who, after repaying one payday loan, must take out another before their next paycheck, new Center for Responsible Lending research shows. Payday churning?repeat borrowing of what payday lenders market as a short-term loan of a few hundred dollars?has been well documented. But the Center for Responsible lending's new report goes further by verifying for the first time how quickly most payday customers must turn around and re-borrow after repaying a previous payday loan. Among the over 80