Payday lending is widespread. FDIC (2013) estimates that 4.7% of all of the U.S. households have actually at a while utilized lending that is payday while Pew Charitable Trusts (2012) sets the figure at 5.5percent of U.S. grownups. In 2005, payday storefronts outnumbered McDonald’s and Starbucks places combined (Graves and Peterson, 2008). Loan providers extended $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 including the Truth in Lending Act plus the Military Lending Act), though this might alter given that the buyer Financial Protection Bureau (CFPB) was provided rulemaking authority within the industry.