New Federal Reserve Payday Loan Study Chastens Critics

Payday loan study brings the facts

Gregory Elliehausen of the Board of Governors of the Federal Reserve system recently produced a telling payday loan report entitled “An Analysis of Consumers’ Use of Payday Loans.” This report gives us a glimpse into the demographic characteristics of payday loan customers and shows us some of the key factors that go into the decision-making process of whether to use the loan product for emergency cash. For a convenient synopsis, consider the Payday Pundit’s outline here.

Payday loans: a cure, not an epidemic

This cutting edge payday lending study proves through survey data of payday loan customers that lenders provide “a desired service to lower and moderate income, middle-educated, young American families.” Unlike the bleating cries of those who criticize the industry - who claim that there’s a payday loan addict around every corner - Elliehausen clearly and non-judgmentally shows that only two percent of U.S. adults use payday loans at any one time. ... click here to read the rest of the article titled "New Federal Reserve Payday Loan Study Chastens Critics"