The Roosevelt Institution
Predatory payday lending is the practice of offering short-term, high interest and fee loans to desperate consumers in need of fast cash. While many states have attempted to regulate the industry and protect consumers, lenders in most areas have managed to exploit legal loopholes and continue to target needy individuals.
The Center on Economic Policy worked to evaluate the relative success of Connecticut's laws compared to other states in order to propose a set of reforms that all states can implement to effectively regulate the predatory payday lending industry. A summary of their research was published in the national Roosevelt publication, 25 Ideas for Working Families in America, which was distributed to every member of Congress and thousands of state and local lawmakers around the nation.
Roosevelt Fellow Ben Lazarus testified before the Washington, DC City Council in June 2007 during a hearing about predatory payday lending regulation in the city. After the hearing, the Council voted to impose strict interest caps on payday loans, in line with Lazarus' recommendations.
Related Materials and Links:
Full Policy Report on Predatory Payday Lending: Jaunary 2007
Text of Lazarus' Testimony: June 2007
Published 25 Ideas Piece: July 2007
Group members:
Gregory Geusic
Alex W Bartik
Lulu Cheng
Brandon Fong
Jacob L Koch
Ben Lazarus
Gregory Lipstein