Payday Pundit

The Center for Responsible Lending continues to promote a report, “Financial Quicksand” that reaches conclusions about the payday lending industry that have been debunked by Veritec Solutions, the data gathering company whose numbers CRL misused. 

Veritec found that conclusions made in the CRL Report are not an accurate reflection of statistical information.

False conclusion #1: Ninety percent of payday lending revenues are based on fees stripped from trapped borrowers

False conclusion #2: The typical payday loan borrower pays back $793 for a $325 loan

False conclusion #3: Regulator data corroborates high levels of loan flipping and that regulator data confirms that most borrowers renew payday loans many times per year.

The complete Veritec report is here.