Small-Dollar Loans

Research & Analysis

State Policy

Payday and auto title loans have historically been regulated at the state level. Currently 35 states have lump-sum payday loans–which take up one-third of an average borrower’s paycheck–and 25 states have high-cost auto title loans–which take up about half. These large lump-sum payments make the loans highly unaffordable for people struggling to make ends meet. How does your state compare?

The Consumer Financial Protection Bureau–the federal regulator charged with setting national minimum standards for these types of loans–recently published their proposal for payday and auto title loans. This will help protect consumers from many of the worst harms in this market. Yet state officials may need to respond to harms that federal regulation cannot address.

Pew has published recommendations for making all small loans safer and more affordable and will continue to provide analysis and technical assistance to interested policymakers.

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Payday Lending in America

This series sheds light on the experience of borrowers. The research also details fundamental...

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Media Contact

Esther Berg

Officer, Communications