Payday Loans — And How to Fix Them

Payday Loans — And How to Fix Them

Research shows that payday loans suffer from three main problems: The loans have unaffordable payments, they fail to work as advertised, and they have excessively high prices.

But the Consumer Financial Protection Bureau (CFPB) and state policymakers have an opportunity to fix these harms and make small loans safer and more affordable.

Jennifer, a typical payday loan customer, has already helped explain payday loans, who uses them, and why. In this video, learn how new rules can give borrowers such as Jennifer an affordable and predictable path out of debt. 

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Agenda for America

A collection of resources to help federal, state, and local decision-makers set an achievable agenda for all Americans

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Data-driven policymaking is not just a tool for finding new solutions for emerging challenges, it makes government more effective and better able to serve the public interest. In the coming months, President Joe Biden and the 117th Congress will tackle a number of environmental, health, public safety, and fiscal and economic issues—nearly all of them complicated by the COVID-19 pandemic. To help solve specific, systemic problems in a nonpartisan fashion, Pew has compiled a series of briefings and recommendations based on our research, technical assistance, and advocacy work across America.

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Payday Loans Explained
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Payday Loans: Who Uses Them and Why?