Community Financial solutions Association of America (CFSA) payday advances while the Borrower Enjoy: Executive Overview

5 for some borrowers, one or more of these other money had been available if they made a decision to simply simply take a payday out

loan rather 9 suggest that a pay day loan ended up being perhaps perhaps perhaps not their sole option, as well as had other resources offered at enough time. Among borrowers that has at minimum one other available resource during the time they decided to sign up for a quick payday loan: o Nearly four in five (78%) state they opted a quick payday loan over other choices because it is far more convenient; and o Seven in ten cite it being faster (71%), and/or easy and simple to know (70%). o About two- thirds report choosing a pay day loan because they: Didn t desire to ask to borrow from family/friends (68%); Had a past good knowledge about payday financing (65%); and/or Didn t wish to overdraw their bank-account and stay charged an overdraft cost (64%). o Three in five (59%) feel a quick payday loan is much more trustworthy; while o Two in five state: it’s less costly (41%); and/or they are able to maybe perhaps not cut spending and do without absolutely essential (40%). Satisfaction utilizing the payday lending procedure is high, with debtor experiences conference or surpassing objectives and lots of planning to suggest or make use of payday financing once again if required. The majority of (98%) borrowers suggest they truly are at the least notably pleased including two- thirds (65%) that are really pleased with their many present cash advance experience. Reasons these borrowers cite since adding to their satisfaction are: o efficiency (8); o Their loan provider dealing with these with respect (81%); o fulfilling their short- term need (80%); o an easy process (76%); o Their loan provider being truthful (75%); o the capacity to get that loan despite woeful credit history (57%); o less costly than options (5); and/or o something different (5%). 97% of borrowers suggest that their general experience with the cash advance procedure had been as you expected (61%) or better (36%); 3% state it absolutely was even worse than expected. Predicated on their latest pay day loan experience: o Four in five (80%) borrowers state they’ve been very possible (6) or likely (18%) to just just simply take away another pay day loan through the exact same shop when they require cash between paychecks as time goes by; and o Two- thirds (65%) report they truly are most likely (46%) or most likely (19%) to suggest payday financing to family members or buddies conversely, one- 3rd (35%) state they may not be after all most most likely (13%) or significantly most most most likely (2) to get this done. 5

6 Informed Borrowers with Accurate Expectations Borrowers did their homework and know very well what they are doing in terms of payday lending. 96percent of borrowers assert that they normally use payday financing responsibly. Four in five (81%) believe making use of lending that is payday financial feeling for them individually. About nine in ten say that prior to taking down an online payday loan, they: o Carefully weighed the potential risks and great things about doing therefore that is(93; and o Did the mathematics from the general expense they might incur (89%). Significantly more than nine in ten borrowers report that prior to starting the pay day loan procedure, they comprehended perfectly or well: o Exactly how much it could price to completely repay the mortgage (95%); and o the length of time it could try completely repay the mortgage (94%). An equivalent portion (94%) suggest that these were in a position to repay their loan into the period of time that they had likely to. Among a summary of factors with possible to influence the choice to just simply just take down a quick payday loan, previous knowledge about payday lending tops the list, with three in five (61%) borrowers who possess previous experience showing this had a whole lot or moderate impact on the choice.

o facets much less influential on the choice, that about one- 3rd of borrowers (who possess experienced each) report as having a tremendous amount or influence, that is moderate

are: Researching payday financing on their particular (36%); marketing for payday lending (34%); and guidelines from family members or buddies (33%). Expectations are practical going in to the pay day loan process as well as some, the feeling ended up being a lot better than that they had anticipated. A lot more than nine in ten borrowers experiences with: o The regards to the pay day loan had been as you expected (74%) or better (2) (4% state even worse than expected); and o the expense of the pay day loan had been not surprisingly (71%) or better (21%) (7% state even even worse than anticipated). Over four in five (84%) borrowers state it had been super easy (5) or notably effortless (33%) to repay their pay day loan, while 16% feel it had been notably hard (13%) or very hard (). Borrowers recognize the cost related to payday financing, and have a tendency to believe the conventional borrowing charge is reasonable. Near to half (47%) of borrowers think that, in comparison to other financing resources, the price of pay day loans is more high priced (23%) or slightly more expensive (24%). o somewhat less (44%) believe payday advances are a comparable as (27%), somewhat less (10%), or significantly less (7%) costly than many other financing resources. Nine in ten (90%) borrowers believe that a fee that is flat of15 per $100 lent reaches least notably reasonable (really reasonable: 25%, reasonable: 37%, significantly reasonable: 28%) as an online payday loan term. o 8% think this term is not reasonable. 6

7 the facts about Lenders Borrowers overwhelmingly choose good terms to spell it out the payday loan provider they caused throughout their many present pay day loan experience. The good: about four in five borrowers state their loan provider ended up being: o Respectful (80%); o Helpful (79%); o Knowledgeable (78%); o reliable (78%); and o honest (77%). The negative: not as much as one in ten borrowers state their loan provider had been: o Deceptive (7%); o Misleading (3%); and o Dishonest (). The worth- add of loan providers in debtor experiences with payday lending is clear and contributes to borrower satisfaction. Hearing their payday loan provider give an explanation for loan terms inside the or her very own terms ended up being undoubtedly, the absolute most helpful element in borrowers choice to simply simply take away an online payday loan (43%). o Other facets discovered helpful by little minorities of borrowers consist of reviewing: a duplicate for the agreement (14%); Explanatory indications posted on workplace walls (1); A handout or disclosure document (3%); and also the business internet site (3%). o One- quarter (24%) of borrowers state that none of those facets had been many helpful in their choice to just take down an online payday loan. 97% of borrowers agree totally that their payday lender plainly explained the regards to the mortgage in their mind, including nearly nine in ten (88%) whom highly agree. Among borrowers whom suggested coming to least somewhat content with their present pay day loan experience: o Four in five (81%) cite their loan provider dealing with these with respect; and o Three in four (75%) cite their loan provider being truthful as reasons behind their satisfaction. 7