Payday lending is widespread. FDIC (2013) estimates that 4.7% of all of the U.S. households have actually at a while utilized payday lending, while Pew Charitable Trusts (2012) places the figure at 5.5per cent of U.S. grownups. In 2005, payday storefronts outnumbered McDonald’s and Starbucks places combined (Graves and Peterson, 2008). Loan providers stretched $40 billion in payday credit this year, producing profits of $7.4 billion (Stephens Inc., 2011).
Up to now the government that is federal maybe not directly regulated payday lending (save via general statutes for instance the Truth in Lending Act additionally the Military Lending Act), though this could alter given that the customer Financial Protection Bureau (CFPB) is provided rulemaking authority on the industry. Typically, payday financing legislation was kept towards the states.