Reality Check: Payday Lender-Funded Poll Shows Borrowers Don’t Want Reform, Independent Poll Shows Exact Opposite
RHETORIC: Poll Shows Payday Loan Consumers Are Satisfied With Service, Don’t Want More Regulation
Payday Lending Industry-funded Poll Purports to Show Consumers Are Satisfied With Service, Wary of Efforts to Strengthen Regulations.
“As federal regulators prepare to crack down on payday lending, a new survey shows that borrowers are overwhelmingly satisfied with the service and wary of efforts to more stringently regulate it. Ninety-four percent of borrowers surveyed for the poll agree that payday loans “can be a sensible decision to get needed cash when faced with unexpected expenses.” Large majorities also say that such loans can be less expensive than commonly available alternatives, and that “Making it harder to get a payday loan would take away the opportunity for Americans to make financial decisions and take control of their own finances.” [Washington Free Beacon: “Poll: Payday Borrowers Overwhelmingly Approve Of Service,” 3/14/16]
REALITY: Poll Funded by Payday Lending Industry
The poll Was Commissioned by The Community Financial Services Association of America, a payday lending industry special interest trade group. “The survey was commissioned by the Consumer Financial Services Association of America, a trade association representing payday lenders. It was conducted by two polling firms, the Republican-leaning Tarrance Group and the Democratic-leaning Global Strategy Group.” [Washington Free Beacon: “Poll: Payday Borrowers Overwhelmingly Approve Of Service,” 3/14/16]
REALITY: Independent, Non-Industry Funded Studies Show Majority of Payday Consumers Feel Taken Advantage of by Lenders and Nearly 75 Percent Support More Regulation
55% Of Payday Loan Consumers Feel Payday Loans Take Advantage of Borrowers. [Pew Charitable Trust: “How Borrowers Choose and Repay Payday Loans”, 2/2013]
72% Of Payday Borrowers Favor More Regulation of the Industry. [Pew Charitable Trust: “How Borrowers Choose and Repay Payday Loans”, 2/2013]