[20060607]RS21728_发薪日贷款：联邦监管举措.pdf

Congressional Research Service The Library of CongressCRS Report for CongressReceived through the CRS WebOrder Code RS21728Updated June 7, 2006Payday Loans: Federal Regulatory Initiativesname redactedEconomic AnalystGovernment and Finance DivisionSummaryA payday loan arrangement permits an individual to use a personal check to get asmall, short-term, cash advance. The loans are typically for $100-$500. The borrowerwrites a postdated check for the loan amount and a fee. The lender holds the check untilthe borrowers next payday, usually two weeks. This source of short-term credit can beexpensive. The fee charged on a 14-day payday loan is typically $15 to $17 per $100advanced, amounts equivalent to an APR (annual percentage rate) of between 391% and443%. A loan can become even more expensive if it is rolled over or extended.State laws have generally governed payday lending; some are silent while othershave prohibited or restricted payday lenders. Payday loans are subject to the disclosureprovisions of the federal Truth-In-Lending Act. When payday lenders attempted topartner with banks and thrifts to circumvent restrictive state laws, however, federalregulators issued supervisory guid