More than nine in 10 payday loan borrowers report their experience with the terms (96 percent) and cost (92 percent) of their payday loans was as expected or better than expected, while more than four in five borrowers (84 percent) say it was very easy or somewhat easy to repay their loans, according to a new national survey commissioned by Community Financial Services Association of America (CFSA) and conducted by Harris Interactive, an international and research polling company, by telephone among 1,004 respondents ages 18+, who are customers of store-front companies within the CFSA, and took out a loan which they repaid in the summer of 2013.
As the first in-depth examination of borrowers’ motivations and rationale, the survey found an overwhelming majority of borrowers are very satisfied or satisfied with their recent payday loan experience (91 percent), carefully weighed the risks and benefits before taking out a loan (93 percent), and value having the option to take a payday loan (95 percent).
Notably, borrowers almost unanimously agree that it should be their choice whether or not to use payday lending, not the government’s choice (95 percent).
“The great majority of borrowers we surveyed said that, for them, payday loans are an important and valuable credit option that helps them overcome financial shortfalls,” said Humphrey Taylor, Chairman of the Harris Poll at Harris Interactive. “Our survey findings reveal almost all borrowers understood the cost of their loans and how long it would take to repay them.”