Community Financial solutions Association of America (CFSA) pay day loans while the Borrower Experience: Executive Overview

Community Financial solutions Association of America (CFSA) pay day loans while the Borrower Experience: Executive Overview

8 Attitudes and panorama on Government Regulation The opinion among borrowers is the fact that federal government should let them make their choices that are own it comes down with their funds.

significantly more than nine in ten borrowers agree totally that: o it ought to be their option whether or otherwise not to make use of payday financing, maybe not the government s choice (95%); and o they ought to are able to make their very own economic decisions without federal government interference (94%). Somewhat less (88%) feel that they must be in a position to determine how frequently they remove an online payday loan and never be restricted to government restrictions. One out of five (21%) borrowers concur that the national government should impose tighter restrictions on pay day loans, even when which means it will be more challenging to allow them to get a quick payday loan (77% disagree). A lot of borrowers are in opposition to most potential federal government laws that could influence pay day loan clients, nevertheless some laws do enjoy debtor support. Two- thirds of borrowers oppose possible federal federal government laws that will: o Require credit- bureau checks of pay day loan clients before they have been permitted to borrow cash (64%); and o Restrict how many loans clients may take call at a(63%) year. Nevertheless: o Three in five (59%) borrowers prefer the federal government establishing restrictions on the buck amount of cash clients can borrow at some point; and o Two in five (41%) favor the government limiting the amount of times a person can restore or expand that loan. 8

9 Appendix Instructions delivered to Member businesses for Sample Pull CFSA has commissioned Harris Interactive, a research that is leading most widely known for The Harris Poll, to conduct a study among its people pay day loan borrowers. The results using this research may be utilized in press materials to demonstrate some great benefits of payday lending for CFSA customers and also to refute other research into the domain that is public has shed a bad light on payday lending all together. Eventually, at the least 1,000 cash advance borrowers is going to be interviewed by telephone, randomly chosen from a database that is compiled of from all participating organizations within CFSA. Our company is asking each participating user business to offer a thorough a number of all their borrowers whom meet the next criteria: 1. Took out a preliminary two- week, due- on- cash advance from the brick- and- mortar location; 2. Had an authentic loan quantity not as much as or add up to $700; 3.

Made repayment that is final of loan, including all rollovers,

between July 1, 2013 and August 15, 2013, by having a zero stability currently as well as at the very least week or two; and 4. found in almost any state for which two- week, due- on- cash advance is lawfully available under any borrower- state regulatory scheme, except Virginia and Colorado. See directory of states that ought to be included below. Once these clients have now been identified, Harris calls for these listings to be delivered in Microsoft Excel file format. Inside the file, each line should include information unique to individual customers, and every column must be designated to carry a particular variable. All columns ought to be labeled utilizing the name that is variable. Variables payday loans in Washington to add for every consumer (one per line) are: Гј Title ( e.g., Mr., Ms., Dr.) Гј First name Гј name that is final Zip code of store location (five digits just) Гј Home telephone number (if known ten digits without any dashes or areas in between) Гј Cellphone phone number (if understood ten digits without any dashes or spaces in between) Гј Date many current loan ended up being initiated (MM/DD/YYYY) Гј Date newest loan had been repaid (MM/DD/YYYY) Гј Original amount of all recent loan (entire dollars only) Гј Principal amount outstanding at time of final repayment (whole bucks just) Гј D/b/a name of loan provider with whom borrower dealt (i.e., title debtor will recognize). Consumer list files should always be labeled as CFSA_Company name_customer List_date and delivered via , utilizing the file title within the subject line, directly to Andrea Pieters, a researcher at Harris that is taking care of this study. Her target is and you will contact her with any queries via or phone at All information supplied to Harris or derived by Harris using this study is supposed to be held in self- confidence prior to a confidentiality that is comprehensive Data Security Agreement dated June 10, 2013 between Harris and CFSA. 9

10 States to add: 1. Alabama 2. Alaska 3. California 4. Delaware 5. Florida 6. Hawaii 7. Idaho 8. Illinois 9. Indiana 10. Iowa 11. Kansas 12. Kentucky 13. Louisiana 14. Michigan 15. Minnesota 16. Mississippi 17. Missouri 18. Nebraska 19. Nevada 20. New Mexico 21. North Dakota 22. Ohio 23. Oklahoma 24. Rhode Island 25. Sc 26. South Dakota 27. Tennessee 28. Texas 29. Utah 30. Washington 31. Wisconsin 32. Wyoming 10

11 Respondent Demographics Gender Male Female Age suggest Race/Ethnicity White Black/African United states Hispanic Mixed competition Native American or Alaskan Native Asian or Pacific Islander other competition Decline to respond to Household Income not as much as $25K ( inter Net) Total n=1,004 37% 63% per cent 23% 13% 4% 34% $25K to lower than $50K ( inter inter Net) 36% $50K or even more ( inter Net) 25% Decline to respond to Education senior school or less ( inter inter Net) Some college/associates ( inter Net) College degree or even more ( Net) Decline to respond to 5% 41percent 38% 20% 1% work Status Employed time that is full component time Self- used Not employed, but to locate work perhaps Not used, rather than trying to find work Retired Not used, because of disability or disease pupil Stay- at- home spouse or partner Decline to respond to Marital Status Never married Married/Living with partner ( Net) hitched or civil union coping with partner Divorced Separated Widowed Decline to answer Total n=1,004 54% 9% 3% 3% 1% 14% 13% 1% * 24% 43% 40% 3% 20% 4% 8% 11

12 Borrower Profile complete n=1,004 wide range of loans removed from shop in past year 0 * 1 9% 2 10% 3 11% 4 9% 5 7percent percent 16% 13% 21+ 6% Mean 7.6 Initial quantity of loan paid back past summer $200 or less ( inter inter Net) 23% $201- $499 ( inter inter Net) 49% $500 or higher ( Net) 28% Mean $ Self- rating of present financial predicament Excellent/Good ( Net) Excellent Good Fair/Poor (Net) Fair Poor 40% 8% 3 60% 43% 17% Self- score understanding of individual finance A/B (Net) C A B D/F (Net) D F investing bills and debt classification No debts in collection ( Net) You spend all your bills on time and have now no debts in collection. You often miss a repayment but don’t have any debts in collection. You battle to spend your bills every month but don’t have any debts in collection. You find it difficult to spend your bills every and are getting calls from debt collectors month. You are really considering filing for bankruptcy or have actually filed for bankruptcy in past times 36 months. You’re not included at all in virtually any economic decisions including just how money is invested in your home. Total n=1,004 56% 16% 40% 36% 7% 6% 76% 33% 23% 20% 16% 5% 1%