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1 Community Financial solutions Association of America (CFSA) payday advances as well as the Borrower Enjoy: Executive Overview offered by: Harris Interactive advertising analysis 4, 2013 december

2 dining Table of articles techniques. 3 Sampling Method. 3 Information Collection Method. 3 Report Notes. 3 Summary of Detailed Findings. 4 Value and interest in Payday Lending. 4 Informed Borrowers with Accurate objectives. 6 The Facts about Lenders. 7 Attitudes and Views on Government Regulation. 8 Appendix. 9 Instructions provided for user businesses for test pull

3 Sampling Method Methods CFSA ed 12 user organizations welcoming them to incorporate their consumer

information into the sample pool because of this study, with directions for pulling the test connected (see Appendix on pages 9-10). User businesses had been instructed for their test files straight to Harris Interactive, and never to duplicate anybody from CFSA. Four user organizations reacted and offered Harris having a list that is complete of clients whom came across the sampling requirements. One user business responded and supplied Harris having a arbitrarily chosen directory of 10,000 of these clients whom came across the sampling requirements. An overall total of 281,031 documents had been gotten by Harris through the five member that is participating. Harris Interactive handled all sample preparation that is further. Test files were de- duped (meaning duplicate records had been eliminated) centered on contact number, and 10,000 documents had been arbitrarily chosen from each https://quickinstallmentloans.com/payday-loans-la/ business (except for the business which delivered an overall total of 10,000 records 9,667 usable records were chosen with this business). Quotas had been set during interviewing to make sure that 200 finished interviews had been acquired from each business. Data Collection Method All information collection ended up being carried out by phone in the united states of america by Harris Interactive on the behalf of Community Financial solutions Association of America (CFSA) from October 9 24, 2013 among 1,004 participants, ages 18+, who will be clients of store- front organizations inside the CFSA, and took away a two- week cash advance of $700 or less, that they made repayment that is final of July or August of Report Notes Information are unweighted and tend to be a agent likelihood sample associated with the populace have been surveyed. The estimated sampling error is +/- 3% o with a sample of this size. Throughout this report o Qualified participants (described in information Collection Method above) are going to be described as Borrowers. o The expression newest cash advance experience will make reference to the mortgage borrowers paid back in July or August of 2013 whether or not they’ve applied for a brand new loan since, since this had been their latest, complete experience with a loan that is payday. 3

4 Value and interest in Payday Lending Summary of Detailed Findings Borrowers recognize the advantages of pay day loans and appreciate having them as a short- term choice for bridging gaps that are financial. Almost all borrowers suggest they appreciate getting the choice to simply just simply take a payday loan out (95%). Nine in ten (89%) concur that they feel more accountable for their financial predicament due to the choice to just just just take away an online payday loan if they require it, and over two- thirds (68%) genuinely believe that without having the choice of using down a quick payday loan, they might take even worse monetary condition than they’ve been now. About nine in ten borrowers concur that pay day loans can: o Provide a security web during unanticipated financial hardships (95%); o Be a good monetary choice whenever up against a crisis money shortfall (9); o Be well worth the price since they be able in order to avoid belated fees on bills (89per cent); and o Help customers bridge a space within their finances (87%). Half (49%) of borrowers state they required the income from a quick payday loan to fund a unforeseen cost ( a vehicle fix or medical crisis), and somewhat less report they necessary to spend ordinary costs between paydays (44%). Extra reasons some borrowers cite for needing a quick payday loan include: o to prevent having to pay a belated charge for a bill (28%); o bouncing a check or overdrawing their bank-account (23%); o away a pal or relative who required cash (19%); and/or o several other explanation (10%). If confronted with a term that is short crisis, and unable to spend a bill, borrowers overwhelmingly state they might select the cash advance choice (a short- term loan asking a $15 charge for every single $100 lent, due on the next payday, 68%) over: o perhaps not having to pay the balance and incurring a belated charge or penalty $30 (4%), or o Overdrawing their banking account and spending an overdraft cost of around $35 (3%). o One- quarter (24%) state they are not certain which of the three choices they might choose. The need for payday lending choice, as borrowers choose a payday loan over other available resources that are financial. borrowers report they required money between paychecks in past times, they will have: o Cut spending and done without one thing they want (67%); and/or o Borrowed from family/friends (60%). Other financial solutions that borrowers state they usually have looked to in past times consist of: o Overdrawn their banking account and charged on overdraft cost (43%); o applied (41%); o Pawned a individual item (27%); o Bounced a check and charged a charge (25%); o applied for a advance loan to their charge card (17%); o applied an installment or name loan (15%); o utilized an internet cash advance (11%); and/or o something different (6%). 4