Perfect Storm: Payday Lenders Harm Florida Consumers Despite State Law

Abstract

Payday loans are marketed as quick fixes for financial emergencies. However, they often create a cycle of debt that has forced several states to consider stronger regulation. Florida's attempt at payday reform has been considered a model by some. However, research shows the law still allows high-interest, high-cost loans that cost Floridians over $2.5 billion over the last decade. We also find evidence of targeting in communities of color, and increased usage with senior citizens.