Payday Loan Report from Across the Nation
Payday advance lending has become a multibillion-dollar industry and is growing online, according to Stephens Inc., a Little Rock brokerage research firm. According to a recent report:
- 23,000: Stores and pawnshops that made payday loans last year.
- 1,650: Stores or pawnshops that specialized Texas payday loans.
- $5.65 billion: Volume of online payday loans handed out last year.
- $1.4 billion: Income made off online payday loans last year.
- Thirteen states don’t allow quick cash loans, and efforts are under way to change the laws to either expand availability or tighten restrictions. Some examples:
- Georgia: The state is considering legislation to once again allowing payday lenders, according to Mary Jackson, a Cash America vice president. She said that many Georgians drive to nearby states to get payday loans and that that demonstrates a demand for the personal loans.
- North Carolina: Payday lenders left the state in 2005 after an adverse ruling by the state’s banking commissioner. Jackson said the strong influence of consumer groups there would likely keep it unfriendly territory for the industry.
- Oregon: Bad credit payday loans under $50,000 are capped at a 36 percent APR.
- Virginia: Efforts to cap payday loans at 72 percent failed last year.
- Arizona, Utah and Wisconsin: Municipalities might use zoning restrictions to limit the number of cash advance payday loan stores.