News ReleaseMonday, November 13, 2006
FOR IMMEDIATE RELEASE:
DFI Releases Payday Lending Report
Olympia, WA – The payday lending industry made $1.4 billion in loans in 2005 according to a report released by the Washington State Department of Financial Institutions (DFI). The report illustrates industry trends, statistics, and information on how frequently consumers borrow payday loans.
The purpose of the report is to provide policy makers with an overview of the industry and how it impacts Washington consumers. This is DFI's third publication capturing detailed information about payday lending.
Licensees are required to provide financial data to DFI each year. The department also initiates a voluntary survey to measure how often consumers borrow. This year, 19 companies responded to the voluntary questionnaire. In 2005, DFI adopted rules which will require payday licensee to provide this information beginning in 2007.
Copies of the report are available on the department’s website.
How do payday loans work?
Payday loan companies offer, small, short-term, high interest, loans generally secured by a posted-dated check. The consumer’s post-dated check is written for the advance amount, plus a fee. The check is held for the loan period by the lender and either deposited or the customer returns with cash to reclaim the check. In Washington, the maximum payday loan amount permitted by law is $700, and the maximum term is 45 days.CONTACT:
Scott Kinney, Director of Communications
PH 360.902.0517 firstname.lastname@example.org
Martha Dickens, Public Information Officer
PH 360.902.8731 email@example.com