Payday Loans

This book analyzes the highly contentious payday lending industry, presenting valuable new data collected during Canada's recent regulatory reviews and demonstrating its relevance to payday lending conversations taking place worldwide. The authors treat the industry with a balanced hand by establishing its importance as an example of financialization and acknowledging the complex impact of payday lending services on low-income and credit-constrained clients. Up-to-date data from an interdisciplinary mix of financial, econometric, legal, behavioral economic, and socioeconomic sources—all in the context of an established Canadian industry—provide both proponents and opponents of payday lending with valuable evidence for their discussions of how much regulation is required to minimize harmful consequences. These insights from Canada expand a US-centric conversation and provide a key resource for the growing list of countries in which the industry is present, from the UK and Poland to South Africa and Australia.

This document explains payday loans, describes their costs, and compares these costs with other types of loans available to consumers.--Government of Canada Publications website.

Learn how a catastophic spiral of payday loan debt was conceived, endured and defeated. This is the story of Steve Perry's battle against the industry, a fight which has left its scars on both sides, it's a story to give strength to all of those who are in payday hell.

The rapid expansion of the payday loan sector has been accompanied by a significant increase in the number of people experiencing serious debt problems which suggests people should think carefully before taking out such loans. Furthermore the number of payday loan adverts seen by 4-15 year olds has increased from 3 million in 2008 to 596 million in 2012. The Committee's recommendations include: all payday loan companies should be required to resubmit their affordability tests to the FCA for approval before they can continue in the sector and the FCA should make clear that if real-time data sharing has not been established by July 2014 it will mandate its use as a condition of trading in the sector; a limit should be set of one roll-over per payday loan; Payday lenders should be required to give 3 working days notice before using a continuous payment authority [CPA] and each notice should set out the right of a customer to cancel the CPA; the FCA should discuss with the Information Commissioners Office how texts on payday loans could be disaggregated to identify the extent of bad practice and if this evidence base demonstrates inappropriate targeting or marketing, the FCA should move to ban all brokering of payday loans through email, texts and other personal mobile devices; when payday loans come under the authority of the FCA, they will be subject to a levy which should be ring fenced by the Money Advice Service solely for the funding of front-line debt advice services

The U.S. Federal Trade Commission (FTC) presents the February 2000 consumer alert "Payday Loans=Costly Cash." The alert cautions consumers against using the small, short-term, high-rate loans known as payday loans. These types of loans are also called cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans.