Payday

A powerful set of financial firms have delayed federal investigations or punishments into their allegedly predatory lending practices, as they seize on an industry-led lawsuit challenging the future of the Consumer Financial Protection Bureau. By Tony Romm, October 28  Washington Post

Special report from the Center for Responsible Lending, June 2023 The national Center for Responsible Lending (CRL) reports that single-payment and payday installment loans in 31 states drain more than $2.2 billion in fees per year from borrowers whose average incomes are approximately $25,000 a year. Car-title loans drain more than $700 million annually from borrowers in 17 states. Together these predatory loans drain almost $3 billion annually from those families who can least afford it.  

Article by Paul Shipp of Kansas Legal Services The number of Payday lenders has grown at an oddly rapid rate over the past few decades, mainly in low income areas. Typically these lenders market directly to low income borrowers, notably those on a steady, fixed, and certain income. Borrowers are often at or below the poverty level; many live off only fixed incomes and are elderly or disabled.