What the Market Demands

Get to Know: The Consumer Need:

  • Payday advance fills a need not met by traditional financial institutions

  • It’s a convenient, less costly, and often more desirable option for short-term, unsecured credit.

Get to Know: Market Alternatives

Bounced check and overdraft protection fees
Consumers pay an estimated $22 billion in NSF fees to banks and credit unions. Banks also collect an estimated $10.3 billion annually for overdraft protection services.

PDF: Contrasting Payday Loans to Bounced Check Fees, Consumer Credit Research Foundation, Thomas E. Lehman, Ph. D., 2005. Overdraft Fees Can Overwhelm, Washington Post, June 26, 2005.

Late payment penalties (landlords, utility companies, credit card companies, etc.)
An estimated $57 billion in late bill payment fees were collected by businesses in 2003, more than 140 percent of the total estimated payday lending volume in the United States. Credit card late fee penalties totaled over $11 billion in 2005.

Sizing NSF-Related Fees, BAI Banking Strategies Magazine, Bill Stoneman, January-February, 2005 (, 2006)

Internet Payday Lending
With a growing but unmeasured market size, Internet payday lending is an “explosive” market that is creating increasing problems for state regulators and enforcement officials, says (Online Payday Loans: Borrower Beware, September 12, 2005). Unregulated off-shore lenders have access to consumers’ bank accounts and charge up to $30 per $100 borrowed.

Get to Know: The Impact of Elimination

Removing the choice of regulated storefront payday lending—the smallest segment of the market—will only force consumers to more expensive, less desirable and unregulated alternatives.

Connecting With Our Communities

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.

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For Our Policymakers

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.