Social Cost of Payday Lending, Part II

Payday loans cost the U.S. economy nearly $1 billion and thousands of jobs in 2011, according to a report from the Insight Center for Community Economic Development

From an CNBC article in May. (

Yay! I am so pleased to see reports of a study like this, to know that more work has been done.

The social cost of payday lending

Finally! I have found a paper that begins to address the social cost of payday lending!  The costs of payday lending on the individual consumer have been widely researched, but I’ve wondered about the social costs of payday lending. By that I mean the costs incurred by a neighborhood or society because a payday lender is operating there.

Heretofore, I had always thought of court cases that a state spends resources on trying This paper looked at crime rates, but also suggested comparing property value differences, among other things.  I haven’t finished reading the paper yet, but I’m so excited about it that I wanted to share it.