Community Financial solutions Association of America (CFSA) payday advances in addition to Borrower Experience: Executive Overview

Community Financial solutions Association of America (CFSA) payday advances in addition to 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 for their funds.

significantly more than nine in ten borrowers agree totally that: o it ought to be their choice whether or perhaps not to make use of payday lending, perhaps not the government s choice (95%); and o they need to are able to make their very own economic choices without federal government interference (94%). Somewhat less (88%) feel they take out a payday loan and not be limited by government restrictions that they should be able to decide how often. One out of five (21%) borrowers concur that the government should impose tighter restrictions on payday advances, no matter if this means it will be harder in order for them to get a quick payday loan (77% disagree). A lot of borrowers are in opposition to many potential federal government laws that could influence cash advance clients, nevertheless some laws do enjoy debtor help. Two- thirds of borrowers oppose possible government laws that could: o Require credit- bureau checks of pay day loan clients before these are typically permitted to borrow funds (64%); and o Restrict how many loans customers usually takes call at a 12 months (63%). But: o Three in five (59%) borrowers favor the federal government limits that are setting the dollar sum of money customers can borrow in the past; and o Two in five (41%) benefit the federal government restricting the sheer number of times a person can renew or expand that loan. 8

9 Appendix Instructions delivered to Member businesses for test Pull CFSA has commissioned Harris Interactive, a research that is leading most commonly known for The Harris Poll, to conduct a study among its users pay day loan borrowers. The outcomes using this research is going to be found in press materials to show the many benefits of payday financing for CFSA customers and to refute other research into the domain that is public has shed a bad light on payday lending in general. Fundamentally, at the least 1,000 pay day loan borrowers should be interviewed by phone, randomly chosen from a database that is compiled of from all participating organizations within CFSA. We have been asking each participating user business to deliver a thorough directory of all their borrowers whom meet the next criteria: 1. Took out a preliminary two- week, due- on- cash advance cash central from the brick- and- mortar location; 2. Had an authentic loan amount lower than 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 for at the very least fourteen days; and 4. found in almost any state by which two- week, due- on- pay day loan is lawfully available under any borrower- state regulatory scheme, except Virginia and Colorado. See directory of states which should be included below. When these clients are identified, Harris calls for these listings to be delivered in Microsoft Excel extendable. In the file, each line should include information unique to individual clients, and each line must be designated to carry a particular variable. All columns should always be labeled using the adjustable title. Variables to add for every customer (one per column) are: Гј Title ( ag e.g., Mr., Ms., Dr.) Гј First name Гј name that is last Zip rule of shop location (five digits just) Гј Home telephone number (if understood ten digits without any dashes or areas in between) Гј Cellphone cell phone number (if understood ten digits without any dashes or areas in between) Гј Date many current loan ended up being initiated (MM/DD/YYYY) Гј Date latest loan ended up being paid off (MM/DD/YYYY) Гј Original amount of many recent loan (whole bucks only) Гј major amount outstanding at time of last payment (whole bucks just) Гј D/b/a name of lender with whom debtor dealt (i.e., name debtor will recognize). Consumer list files must be labeled as CFSA_Company name_customer List_date and delivered via , because of the file name into the topic line, straight to Andrea Pieters, a researcher at Harris who’s taking care of this study. Her target is and you may contact her with any concerns via or phone after All information supplied to Harris or derived by Harris using this study is likely to be held in self- confidence according to a comprehensive privacy and Data Security Agreement dated June 10, 2013 between Harris and CFSA. 9

10 States to add: 1. Alabama 2. Alaska 3. Ca 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. Brand Brand New Mexico 21. North Dakota 22. Ohio 23. Oklahoma 24. Rhode Island 25. Sc 26. Southern Dakota 27. Tennessee 28. Texas 29. Utah 30. Washington 31. Wisconsin 32. Wyoming 10

11 Respondent Demographics Gender Male Female Age Mean Race/Ethnicity White Black/African United states Hispanic Mixed battle Native American or Alaskan Native Asian or Pacific Islander several other competition Decline to resolve Household Income not as much as $25K ( inter Net) Total n=1,004 37% 63% % 23% 13% 4% 34% $25K to significantly less than $50K ( Net) 36% $50K or higher ( inter Net) 25% Decline to resolve Education senior school or less ( Net) Some college/associates ( inter inter Net) degree or higher ( Net) Decline to answer 5% 41% 38% 20% 1% Employment Status Employed time that is full part time personal- used perhaps Not used, but seeking work perhaps Not used, rather than searching for work resigned perhaps Not employed, as a result of disability or disease pupil Stay- at- home spouse or partner Decline to respond to Marital Status Never married Married/Living with partner ( inter inter 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 Total n=1,004 wide range of loans applied for from store in previous year 0 * 1 9% 2 10% 3 11% 4 9% 5 7percent per cent 16% 13% 21+ 6% Mean 7.6 Initial quantity of loan paid back past summer $200 or less ( inter Net) 23% $201- $499 ( inter Net) 49% $500 or maybe more ( inter Net) 28% Mean $ personal- rating of present financial situation Excellent/Good ( inter Net) Excellent Good Fair/Poor (Net) Fair Poor 40% 8% 3 60% 43% 17% personal- score understanding of personal finance A/B (Net) C A B D/F (Net) D F investing bills and financial obligation category No debts in collection ( inter inter Net) You spend your entire bills on time and now have no debts in collection. You often skip a payment but haven’t any debts in collection. You find it difficult to pay 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 may be really considering filing for bankruptcy or have actually filed for bankruptcy within the previous 3 years. You aren’t included at all in just about any decisions that are financial how cash is invested in your household. Total n=1,004 56% 16% 40% 36% 7% 6% 76% 33% 23% 20% 16% 5% 1%