Pew has conducted extensive research on the high-cost small-dollar loan market over the past five years. The findings show that although these products offer quick cash, the unaffordable payments lead consumers to quickly take another loan to cover expenses. Twelve million Americans take out payday loans each year, spending more than $7 billion on loan fees.
The Consumer Financial Protection Bureau (CFPB) is expected to release new rules this year that will transform the market for payday, auto title, and other small-dollar loan products. The data below provide facts on the market and borrower usage, plus a brief review of the CFPB's proposed framework to regulate payday and auto title loans.