Payday Loan Facts

Satistics

  • About 42% of millennials used an alternative financial services product, according to research.
  • Nearly 50% of millennials could not come up with $2,000 for an unexpected bill in the next month.
  • Federal regulators expected to announce more rules on alternative lending products in June.

A 2012 study from the Financial Industry Regulatory Authority found that 40% of Americans would have a hard time pulling together $2,000 within 30 days to handle an emergency loans

Typically $15 per $100 borrowed

In the USA, payday loan fees are an estimated $3.4bn year. 75% of industry fees come from borrowers that take out 10 loans or more a year.  Because these loans are so small, for every $100 borrowed, the lender gets $15 fees.

Will Google’s move banning payday loan ads be the end of such payday loan facts?