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1 Community Financial solutions Association of America (CFSA) payday advances while the Borrower Enjoy: Executive Summary delivered by: Harris Interactive pr analysis December 4, 2013

2 dining dining Table of Contents techniques. 3 Sampling Method. 3 Information Collection Method. 3 Report Notes. 3 Summary of Detailed Findings. 4 Value and interest in Payday Lending. 4 Informed Borrowers with Accurate objectives. 6 The Reality about Lenders. 7 Attitudes and Views on Government Regulation. 8 Appendix. 9 Instructions provided for member companies for test pull

3 Sampling Method Methods CFSA ed 12 user organizations welcoming them to incorporate their consumer

information in the test pool with this study, with instructions for pulling the test connected (see Appendix on pages 9-10). Member businesses had been instructed with their test files straight to Harris Interactive, and never to copy anybody from CFSA. Four user businesses reacted and supplied Harris with a complete selection of their clients whom came across the sampling criteria. One user business reacted and offered Harris by having a arbitrarily selected listing of 10,000 of these customers whom came across the sampling criteria. A complete of 281,031 documents were received by Harris through the five member that is participating. Harris Interactive handled all sample preparation that is further. Test files were de- duped (meaning duplicate records had been removed) centered on contact number, and 10,000 documents had been arbitrarily chosen from each company (except for the organization which sent an overall total of 10,000 records 9,667 car title loans online approval usable records had been selected with this business). Quotas had been set during interviewing to make sure that 200 finished interviews had been obtained from each business. Data Collection Method All data collection was carried out by telephone in the united states of america by Harris Interactive on the behalf of Community Financial solutions Association of America (CFSA) from October 9 24, 2013 among 1,004 participants, ages 18+, that are clients of shop- front companies inside the CFSA, and took down a two- week cash advance of $700 or less, that they made repayment that is final of July or August of Report Notes Data are unweighted and tend to be a representative likelihood sample of this populace who had been surveyed. The estimated sampling error is +/- 3% o with a sample of this size. Throughout this report o Qualified respondents (described in information Collection Method above) will likely to be known as Borrowers. o The expression newest cash advance experience will make reference to the mortgage borrowers paid back in July or August of 2013 whether or not they usually have removed a brand new loan since, since this ended up being their most recent, complete knowledge about a loan that is payday. 3

4 Value and interest in Payday Lending Summary of Detailed Findings Borrowers recognize some great benefits of pay day loans and appreciate having them as a short- term choice for bridging financial gaps. Almost all borrowers suggest which they appreciate obtaining the choice to just just take away an online payday loan (95%). Nine in ten (89%) agree totally that they feel more accountable for their finances due to the choice to take a payday loan out when they require it, and over two- thirds (68%) genuinely believe that without having the choice of using down an online payday loan, they might be in worse economic condition than they have been now. About nine in ten borrowers agree totally that pay day loans can: o supply a safety internet during unforeseen financial hardships (95%); o Be a smart monetary decision whenever confronted with an urgent situation money shortfall (9); o Be well worth the fee it possible to avoid late charges on bills (89%); and o Help customers bridge a gap in their finances (87%) because they make. Half (49%) of borrowers say they required the amount of money from an online payday loan to cover an expense that is unexpected an automobile fix or medical crisis), and somewhat less report they needed to spend ordinary expenses between paydays (44%). Extra reasons some borrowers cite for needing a quick payday loan include: o having to pay a late charge for a bill (28%); o in order to avoid bouncing a check or overdrawing their bank-account (23%); o to aid down a friend or relative who required cash (19%); and/or o several other reason (10%). If confronted with a short- term financial crisis, and struggling to spend a bill, borrowers overwhelmingly state they might choose the pay day loan choice (a short- term loan recharging a $15 cost for every single $100 lent, due to their next payday, 68%) over: o perhaps not spending the bill and incurring a late cost or penalty $30 (4%), or o Overdrawing their banking account and having to pay an overdraft fee $35 (3%). o One- quarter (24%) state they’re not certain which of those three options they’d choose. The interest in payday lending is dependent on choice, as borrowers choose a quick payday loan over other available cost savings. borrowers report they required cash between paychecks in yesteryear, they will have: o Cut done and spending without one thing they require (67%); and/or o Borrowed from family/friends (60%). Other financial solutions that borrowers state they have looked to in past times consist of: o Overdrawn their banking account and charged on overdraft charge (43%); o Used (41%); o Pawned an item that is personal27%); o Bounced a check and charged a fee (25%); o applied for a cash advance bank card (17%); o applied an installment or name loan (15%); o applied an on-line cash advance (11%); and/or o another thing (6%). 4