Madison Rosamond Floyd 4 years back Views:

1 Community Financial Services Association of America (CFSA) pay day loans while the Borrower Enjoy: Executive Overview delivered by: Harris Interactive pr analysis December 4, 2013

2 dining dining Table of articles techniques. 3 Sampling Method. 3 Information Collection Method. 3 Report Notes. 3 Overview of Detailed Findings. 4 Value and need for Payday Lending. 4 Informed Borrowers with Accurate objectives. 6 The Facts about Lenders. 7 Attitudes and Views on Government Regulation. 8 Appendix. 9 guidelines delivered to user businesses for test pull

3 Sampling Method Methods CFSA ed 12 user businesses welcoming them to incorporate their client

information into the test pool with this study, with directions for pulling the test connected (see Appendix on pages 9-10). User businesses had been instructed for their test files straight to Harris Interactive, rather than to duplicate anybody from CFSA. Four member businesses reacted and supplied Harris having a complete set of their clients whom came across the sampling requirements. One user business provided and responded Harris with an arbitrarily chosen set of 10,000 of the clients whom came across the sampling requirements. an overall total of 281,031 documents had been gotten by Harris through the five participating user organizations. Harris Interactive handled all further test planning. Test files were de- duped (meaning duplicate records had been eliminated) centered on contact number, and 10,000 documents had been arbitrarily chosen from each business (except for the business which delivered a complete of 10,000 records 9,667 usable records had been chosen using this business). Quotas had been set during interviewing to ensure 200 finished interviews had been acquired from each business. Data Collection Method All information collection had been carried out by phone inside the united states of america by Harris Interactive with respect to Community Financial solutions Association of America (CFSA) from October 9 24, 2013 among 1,004 participants, ages 18+, that are clients of shop- front organizations inside the CFSA, and took down a two- week pay day loan of $700 or less, that they made repayment that is final of July or August of Report Notes Information are unweighted and tend to be an agent likelihood sample of this populace have been surveyed. o With an example with this size, the approximated sampling mistake is +/- 3%. Throughout this report o Qualified participants (described in information Collection Method above) is supposed to be described as Borrowers. o The expression newest pay day loan experience will make reference to the mortgage borrowers paid back in July or August of 2013 whether or not they usually have removed a fresh loan since, since this had been their latest, complete experience with a loan that is payday. 3

4 Value and need for Payday Lending Summary of Detailed Findings Borrowers recognize the many benefits of pay day loans and appreciate having them as a short- term choice for bridging economic gaps. Most borrowers suggest which they appreciate obtaining the choice to just just simply take a payday loan out (95%). Nine in ten (89%) agree totally that they feel more in charge of their financial predicament due to the solution to simply simply just just take away an online payday loan once they want it, and over two- thirds (68%) genuinely believe that with no choice of using down an online payday loan, they’d maintain even even worse economic condition than they have been now. About nine in ten borrowers concur that payday advances can: o Provide a security internet during unanticipated financial hardships (95%); o Be an intelligent economic choice whenever up against a crisis money shortfall (9); o Be well well well well worth the fee simply because they be able to prevent belated costs on bills (89%); and o Help customers bridge a space within their finances (87%). Half (49%) of borrowers say they needed the cash from an online payday loan to cover an expense that is unexpectedsuch as for example a vehicle fix or medical crisis), and somewhat less report they had a need to spend ordinary costs between paydays (44%). Extra reasons some borrowers cite for needing a quick payday loan include: o in order to avoid spending a belated charge for a bill (28%); o bouncing a check or overdrawing their bank-account (23%); o to greatly help a friend out or relative who required cash (19%); and/or o other explanation (10%). If up against a term that is short crisis, and not able to spend a bill, borrowers overwhelmingly state they would select the pay day loan choice (a short- term loan asking a $15 charge for every $100 lent, due next payday, 68%) over: o perhaps not spending the bill and incurring payday loans online same day a belated cost or penalty of around $30 (4%), or o Overdrawing their banking account and spending an overdraft charge $35 (3%). o One- quarter (24%) state they’re not certain which three choices they might select. The need for payday financing is dependent on choice, as borrowers choose an online payday loan over other available resources that are financial. A lot of borrowers report they required cash between paychecks in past times, they usually have: o Cut spending and done without one thing they require (67%); and/or o Borrowed from family/friends (60%). Other financial solutions that borrowers state they usually have looked to within the past consist of: o Overdrawn their bank-account and charged on overdraft cost (43%); o applied (41%); o Pawned a individual product (27%); o Bounced a check and charged a charge (25%); o removed a advance loan on the bank card (17%); o applied an installment or name loan (15%); o utilized an on-line cash advance (11%); and/or o one more thing (6%). 4