Community Financial solutions Association of America (CFSA) payday advances additionally the Borrower Enjoy: Executive Overview

Community Financial solutions Association of America (CFSA) payday advances additionally the Borrower Enjoy: Executive Overview

8 Attitudes and panorama on Government Regulation The consensus among borrowers is the fact that federal government should let them make their very own alternatives whenever it comes down with their finances.

a lot more than nine in ten borrowers concur that: o it ought to be their option whether or perhaps not to make use of payday financing, perhaps not the government s choice (95%); and o they need to are able to make their particular economic choices without federal government interference (94%). Somewhat less (88%) feel they take out a payday loan and not be limited by government restrictions that they should be able to decide how often. One in five (21%) borrowers agree totally that the national federal government should impose tighter restrictions on pay day loans, just because which means it might be more challenging in order for them to get an online payday loan (77% disagree). A lot of borrowers are in opposition to many potential government regulations that would influence cash advance clients, but some laws do receive borrower support. Two- thirds of borrowers oppose possible government laws that will: o Require credit- bureau checks of cash advance clients before these are typically permitted to borrow funds (64%); and o Restrict the amount of loans clients may take call at per year (63%). But: o Three in five (59%) borrowers prefer the federal government establishing restrictions on the buck amount of cash clients can borrow at once; and o Two in five (41%) benefit the federal government limiting the sheer number of times a person can restore or expand financing. 8

9 Appendix Instructions provided for Member organizations for test Pull CFSA has commissioned Harris Interactive, a leading research firm most widely known for The Harris Poll, to conduct a study among its users cash advance borrowers. The outcome out of this research will undoubtedly be utilized in press materials to show some great benefits of payday lending for CFSA clients also to refute other research within the general public domain that has shed a bad light on payday lending in general. Eventually, at the least 1,000 cash advance borrowers will soon be interviewed by phone, arbitrarily chosen from a database that is compiled of from all participating organizations within CFSA. Our company is asking each participating member business to give an extensive set of all their borrowers who meet the next criteria: 1. Took out a short two- week, due- on- cash advance from a brick- and- mortar location; 2. Had an authentic loan quantity lower than or add up to $700; 3.

Made last repayment associated with the loan, including all rollovers,

between July 1, 2013 and August 15, 2013, with a zero stability presently as well as for at the least 2 weeks; and 4. found in almost any state by which two- week, due- on- cash advance is lawfully available under any borrower- state regulatory scheme, except Virginia and Colorado. See listing of states that ought to be included below. When these clients have already been identified, Harris calls for these listings to be delivered in Microsoft Excel extendable. Inside the file, each line should include information unique to individual clients, and every line should really be designated to put up a particular variable. All columns must be labeled because of the adjustable title. Factors to add for every single consumer (one per column) are: Гј Title ( e.g., Mr., Ms., Dr.) Гј First name Гј title that is last Zip rule of shop location (five digits just) Гј Home telephone number (if known ten digits without any dashes or areas in between) Гј Mobile phone number (if understood ten digits without any dashes or areas in between) Гј Date many current loan had been initiated (MM/DD/YYYY) Гј Date most recent loan ended up being paid (MM/DD/YYYY) Гј Original amount of all recent loan (entire bucks only) Гј major amount outstanding at time of final payment (whole bucks just) Гј D/b/a name of loan provider with whom borrower dealt (i.e., title borrower will recognize). Consumer list files must be labeled as CFSA_Company name_customer List_date and delivered via , aided by the file title into the line that is subject directly to Andrea Pieters, a researcher at Harris that is taking care of this study. Her address is and you will contact her with any concerns via or phone at All information supplied to Harris or derived by Harris out of this study will soon be held in confidence relative to a comprehensive confidentiality and Data Security Agreement dated June 10, 2013 between Harris and CFSA. 9

10 States to add: 1. Alabama 2. Alaska 3. California 4. Delaware 5. Florida 6. Hawaii 7. Idaho 8. Illinois 9. Indiana 10. Iowa 11. Kansas 12. Kentucky 13. Louisiana 14. Michigan 15. Minnesota 16. Mississippi 17. Missouri 18. Nebraska 19. Nevada 20. Brand New Mexico 21. North Dakota 22. Ohio 23. Oklahoma 24. Rhode Island 25. Sc 26. Southern Dakota 27. Tennessee 28. Texas 29. Utah 30. Washington 31. Wisconsin 32. Wyoming 10

11 Respondent Demographics Gender Male Female Age suggest Race/Ethnicity White Black/African United states Hispanic Mixed competition Native American or Alaskan Native Asian or Pacific Islander several other competition Decline to respond to Household Income significantly less than $25K ( inter Net) Total n=1,004 37% 63% per cent 23% 13% 4% 34% $25K to significantly less than $50K ( inter Net) 36% $50K or maybe more ( Net) 25% Decline to resolve Education senior school or less ( Net) Some college/associates ( inter Net) college education or even more ( Net) Decline to respond to 5% 41percent 38% 20% 1% work Status Employed time that is full component time personal- employed maybe Not used, but trying to find work Not used, and never to locate work resigned maybe Not employed, because of disability or disease pupil Stay- at- home spouse or partner Decline to resolve Marital Status Never married Married/Living with partner ( Net) Married or civil union Living with partner Divorced Separated Widowed Decline to answer Total n=1,004 54% 9% 3% 3% 1% 14% 13% 1% * 24% 43% 40% 3% 20% 4% 8% 11

12 Borrower Profile Total n=1,004 quantity of loans applied for from shop in title loans in previous year 0 * 1 9% 2 10% 3 11% 4 9% 5 7percent per cent 16% 13% 21+ 6% Mean 7.6 Initial level of loan repaid past summer $200 or less ( inter Net) 23% $201- $499 ( inter inter Net) 49% $500 or even more ( inter Net) 28% Mean $ personal- rating of present situation that is financial ( inter inter Net) Excellent Good Fair/Poor (Net) Fair Poor 40% 8% 3 60% 43% 17% personal- score familiarity with personal finance A/B (Net) C A B D/F (Net) D F Paying bills and financial obligation classification No debts in collection ( inter Net) You spend all your bills on time and now have no debts in collection. You often skip a payment but do not have debts in collection. You battle to spend your bills every but have no debts in collection month. You find it difficult to spend your bills every and are getting calls from debt collectors month. You may be really considering filing for bankruptcy or have actually filed for bankruptcy in past times 3 years. You’re not included at all in every monetary choices including just how money is invested in your home. Total n=1,004 56% 16% 40% 36% 7% 6% 76% 33% 23% 20% 16% 5% 1%