Payday Lending Industry Influence on Academic Research

There are differing beliefs on payday loans and how far regulation should go to protect consumers; to better answer the effects of payday lending on consumers many people turn to research; results of a study done in 2014 are now in doubt after a watchdog group found that $30,000 of grant funding came from a payday-industry-backed organization; since these types of studies help shape policy it has brought into question how deep these types of studies should be evaluated. Source

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Jer Trihouse
Jer Trihouse
Feb. 7, 2018 1:55 am

What a foolish, misguided interpretation of payday loan data. The Center for Responsible Lending – a nonprofit group founded by an ex-savings and loan executive who made millions of dollars in the 80’s and went on to make more millions by entering the credit union industry – did exactly what the PDL industry is accused of. The CRL blasted out millions of emails to their subscribers with a template/letter that was simply a fill-in-the-blank attack on the payday loan industry. This template was designed to be emailed to the CFPB. Banks, unions, lobbyists, tech companies… ALL use this tactic to increase their scale and noise with the regulators.

Doesn’t take a genius to comprehend why banks and credit unions hate payday loan companies. It’s been estimated by the FDIC that approximately 70%+ of their revenue is generated by NSF fees!

At least I admit I’m biased!
Jer