Despite record high foreclosures, unemployment, and broken state budgets, one industry is flourishing: Payday Lending.
And, in this new report, Profiting from Poverty: How Payday Lenders Strip Wealth from the Working-Poor for Record Profits, National People’s Action documents just how devastating this industry is to our communities.Major findings:
- Payday lenders take at the very least $3.4 billion from our communities every year in fees alone. This figure represents some $3.1 billion in wealth stripped from desperate borrowers – money that could have gone to buy needed groceries or school supplies – to pump up the payday lenders’ fat bottom lines.
- Nationwide, revenues for the major payday loan companies (Advance America, EZ Corp, First Cash Financial, Dollar Financial, Cash America, QC Holdings) have risen to their highest level – $1.48 Billion per year- more than before the financial crisis.
- Big banks like Bank of America, Wells Fargo, JPMorgan Chase, and US Bank finance approximately 42% of the entire payday loan industry, providing the industry the capital for usurious and predatory loans.
> Click Here to Download the Report (pdf)
> Click Here for REAL Solutions Resources/Tools on Payday Lending