In 2009, the George Washington University School of Business released a comprehensive economic analysis of consumer demand for, and use of, payday advance services. The study was conducted among a national representative sample of customers of CFSA member companies. It found that:
Customers overwhelmingly appreciate the payday advance product.
86 percent of customers believe it is a useful financial product.
88 percent were satisfied with their last transaction.
Customers use the service responsibly.
71 percent of customers use payday advances to cover unexpected expenses or a temporary reduction in income.
58 percent of customers either did not renew in the last year or renewed only 1-2 or 3-4 times. (“Renewals” include both rollovers and advances taken out the same day another was paid in full.)
Customers understand the cost of the service.
95 percent of customers were aware of and reported the finance charge and could compare it with similar fees.
81 percent of customers could recall that the fee had been disclosed as an APR, although most could not recall the rate.
Most customers fit the expected economic profile of consumers in early life-cycle stages.
Most come from middle-income, educated young families.
32 percent of customers own homes and 100 percent have steady incomes and checking accounts.
Nearly 94 percent have a high school diploma or better; with 56 percent having some college or a degree.
My CFSA membership has paid off in more ways than one. As an owner of a small payday advance company, I depend on CFSA to look after my interest. The organization has represented me well. In fact, CFSA was instrumental in helping me to address concerns of consumer advocates in my community. CFSA involvement was a positive factor in our ability to reach a resolution."
CEO/President, E$Z Financial Group
CFSA Member Since 1998
Managing household finances can be a daunting task. However, by using solid budgeting and savings techniques, you can accomplish major financial goals. In the Customer Resource Center, CFSA offers a variety of payday advance resources that support and encourage responsible lending practices, and highlight the vital role of our members’ stores in neighborhoods near you.
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Here you will find an aggregate of industry research, comprehensive data, and benchmarking tools from the short-term lending industry. They cover all payday advance business areas – consumer demographics, media hits, the latest policy initiatives, among others. Click here to access to the partner's resource library.
CFSA works at the federal, state, and local levels educate legislators and regulators about the role of payday advances in the broader financial services arena. This section provides resources for policymakers who believe in access to credit, want to preserve financial options and ensure balanced, substantive consumer protections. Click here to enter the Policymaker Resource Library.