Fast Facts on Pay Day Loan Amounts
- Nearly 80 % of payday borrowers report that the total amount they received had been the total amount they needed
- 90 % of payday borrowers whose loan ended up being inadequate did not remove a payday loan that is new
- Borrowers whoever loans had been direct installment loans insufficient typically postponed acquisitions, did without and borrowed from family and friends
A provision that is key of 377, authored by Asm. Tony Mendoza (D-Los Angeles), would enhance the pay day loan restriction from $300 to $500 from the industry’s assertion that $300 is insufficient as a result of Ca’s high price of residing. Not merely is more debt seldom the answer to problems that are financial Californians living paycheck to paycheck, however the Department of Corporation’s very own data confirm it.
Based on the DOC analysis associated with the loans in excess of 70 per cent of California’s payday borrowers in 2006, merely a 2.4 per cent of clients that year obtained multiple loan during the time that is same various licensees. Then this number should be much higher if borrower demand for larger amounts of money were a reality.