what is payday loan
By 2008, writes Jonathan Zinman, an economist at Dartmouth, payday-loan stores nationwide outnumbered McDonald’s restaurants and Starbucks coffee shops combined
That maxim surely helped guide the deregulation of the fringe lending business in the 1990s-and some advocates still believe that further deregulation is the key to making payday loans affordable
There’s no single reason payday lending in its more mainstream, visible form took off in the 1990s, but an essential enabler was deregulation. States began to roll back usury caps, and changes in federal laws helped lenders structure their loans so as to avoid the caps.
Still, according to Pew, the number of states in which payday lenders operate has fallen from a peak of 44 in 2004 to 36 this year
Now, however, the storefront-payday-lending industry is embattled.