New information from CFSA on the size of the unsecured, short-term credit market.
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Consumer Demand for Unsecured, Short-Term Credit is Undeniable. Millions of Americans are struggling to make ends meet, with nearly half living paycheck to paycheck. Rising unemployment rates have caused more families to transition from two-income to one-income households and hourly jobs and overtime payments are being scaled back significantly.
Market Alternatives. Consumers facing a necessary expense and caught short between paydays must often choose between costly and undesirable options: pay the bill now and face bounced check or overdraft protection fees; pay the bill late and incur late penalties; borrow from friends and family; or take out a loan from an unknown Internet lender. Removing one option in today’s environment will only force consumers into more expensive, less desirable and unregulated alternatives.
