Marketed as a way to help consumers pay the bills until their paychecks arrive, payday loans trap consumers in terrible cycles of debt, dragging their families more deeply into financial crisis. In return for a loan, the consumer provides the lender a post-dated check for the amount borrowed plus a fee. The check is held for 1 to 4 weeks (usually until the customer’s payday) at which time the customer redeems the check by paying the face amount or allowing the check to be cashed. Payday lenders encourage their customers to get on a debt treadmill by refinancing one payday loan with another. The fees for payday loans are exorbitant with effective interest rates that can top 1,000%.

The repeal of usury laws has allowed payday loans and other predatory lending to flourish.


More reports 

Policy Briefs & Fact Sheets

More policy briefs & fact sheets 

Comments & Testimony

  • Comments to CFPB on Buy Now Pay Later Products, Mar. 25, 2022. Coalition comments. NCLC comments.
  • Group Comments to the CA DFPI on Proposal to Register Wage-Based Advances, Dec. 20, 2021
  • Testimony of Lauren Saunders Before the U.S. House Committee on Financial Services Task Force on Financial Technology On “Buy Now, Pay More Later Investigating Risks and Benefits of BNPL and Other Emerging Fintech Cash Flow Products,” Nov. 1, 2021
  • Letters Urging CFPB to Reverse Earned Wage Access Actions (Coalition, Legal Analysis), Oct. 12, 2021
  • Comments to the National Credit Union Association (NCUA) re: Proposal to Expand Engagement of Credit Union Service Organizations, Apr. 30, 2021; press release, May 3, 2021
  • Comments to California DFPI on general priorities, earned wage access products, and income share agreements, Mar. 15, 2021
  • Comments to U.S. Treasury urging tighter criteria for CDFI certification, Nov. 5, 2020
  • Comments to Treasury’s CDFI Fund on small dollar loan program, Sept. 11, 2020
  • Group comments to the FTC re: Insufficient Order re: Rent-to-Own Market Swaps and Suppressing Competition, March 25, 2020

More comments & testimony


  • Letter Opposing Calif. AB 2540 Authorizing “Tips” Deducted from Unemployment, Public Assistance and Child Support Payments Deposited to Nonbank Deposit Accounts, April 6, 2022
  • Letter Opposing NJ S. 3611, Earned Income Access Services Bill, December 30, 2021
  • Group letter to CFPB re: Fintech Credit Products, December 21, 2021; press release
  • Group letter to OCC Opposing Proposed Rule to Pressure Banks to Support Predatory Lending, January 4, 2021
  • Coalition letter to the CFPB Opposing Payday Disclosure Testing, December 14, 2020

More letters

Press Releases

More press releases


  • Amicus brief: Community Financial Services Assoc. of America and Consumer Services Alliance of Texas v. CFPB and J. Mulvaney
    NCLC joined AFR, CRL and PC seeking to oppose the joint motion of the CFPB and the payday industry representatives to stay both the litigation and the implementation date of the rule.

Payday & Installment Policy Analysis Archive >>>