Since 2011, Pew’s small-dollar loans project has conducted extensive research on payday, auto title, and similar loans, and found that the market is plagued by unaffordable payments, deceptive business practices, and excessive prices.
The Consumer Financial Protection Bureau—the federal regulator charged with setting new rules for these types of loans—has proposed a new regulatory framework and is currently working to finalize it. In the near future, states that allow these loans today will have a choice to make: Prohibit such loans entirely or substantially reform them to meet or exceed federal standards.
Pew’s goal is to provide research, recommendations, and technical assistance to help state and federal lawmakers craft policies for a safer, more affordable small-dollar loan marketplace.