About Payday Lending

Consumer demand and changes in the financial services marketplace led to rapid growth of payday loans. As banks began making more money from bounced-check fees and related “protection” plans, they quit offering small-denomination, short-term loans. Meanwhile, the number of states with laws enabling payday loans has grown from six in 1996 to more than 35 today. These laws often include consumer protections for payday loan customers.

In 2005, an estimated 23,000 payday loan locations served about 15 million U.S. households with about 100 million payday loans. Industry analysts believe this could more than double in the future.

< Back to Home Page