Continued coverage from the WoonSocketPatch.com.
According to the article:
CRL estimates that $3 million per year is being sucked out of the Rhode Island economy by nationally run payday loan companies, such as Check ‘N Go of Ohio and Advance America of S.C.
IHS Global Insight conducted a comprehensive study analyzing the economic impact of the payday loan industry nationally and in states with storefront locations. Findings illustrate “measurable and significant” economic benefits to local economies directly through employment, compensation and taxes, as well as through indirect and induced relationships with suppliers and other industries.
The industry contributed over $5 million to Rhode Island’s gross state product (GSP) in 2007.
The payday lending industry supports 74 jobs1 in Rhode Island, including 42 people directly employed in13 storefront locations.
- The industry indirectly created another 10 jobs in supplier industries.
- Payday loan store and supplier industry employees induced the creation of 23 jobs through the purchase of goods and services using earned wages.
In Rhode Island, the total labor income impact from the payday loan industry is nearly $3.2 million:
- Through direct employment, payday loan stores contributed $1.7 million in labor income.
- Suppliers to the payday lending industry contributed $480,000 in labor income as an indirect result of the revenues generated by the payday loan industry.
- $1 million was generated from the wages of payday loan store employees and supplier industries’ employees as they were spent in Rhode Island’s economy.
