Small-Dollar Loans

Since 2011, Pew’s small-dollar loans project has conducted extensive research on payday, auto title, and similar loans and found that the market is plagued by unaffordable payments, deceptive business practices, and excessive prices.

The Consumer Financial Protection Bureau—the federal agency charged with regulating these loans—has proposed a new rule. However, without changes, the regulation would allow payday loans with 400 percent interest rates to flourish while locking out lower-cost loans from banks that could save millions of borrowers billions of dollars.

Pew provides research, recommendations, and technical assistance to help state and federal lawmakers craft policies for a fair, safe, and affordable small-dollar loan marketplace.

Our Work

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  • Pew: CFPB’s Proposed Payday Loan Rule Misses Historic Opportunity

    Washington—The Pew Charitable Trusts warned today that the Consumer Financial Protection Bureau’s proposed rule on payday and auto title lending lacks clear product safety standards, makes it too easy for payday lenders to continue making harmful loans, and fails to encourage banks and credit unions to enter the market and make lower-cost loans. Read More

  • Federal Rules for Small Loans

    The Consumer Financial Protection Bureau (CFPB) has issued a proposed framework to regulate payday and similar high-cost, small-dollar loans. Overall, the proposal could transform the market in positive ways by requiring most products to become installment loans with smaller, more manageable payments and providing safeguards for consumers. Read More

  • Proposed Payday Lending Rule Would Leave Borrowers Vulnerable

    The Consumer Financial Protection Bureau (CFPB) has proposed the first federal rules on payday loans, which 12 million consumers use every year. However, the proposal falls short because it would allow payday loans with 400 percent interest rates to flourish while locking out lower-cost loans from banks. Read More

Media Contact

Sultana Ali

Officer, Communications

202.540.6188