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87 Minn. L. Rev. 1 (2002-2003)
Payday Loans: Shrewd Business or Predatory Lending

handle is hein.journals/mnlr87 and id is 15 raw text is: Payday Loans: Shrewd Business or Predatory Lending? Creola Johnsont I. The Nature of Payday Lending .......................................... 8 A. What Are Payday Loans and Who Uses Them? ...... 9 B. Payday Loans: Ordinary Check-Cashing Services or Lending M oney? ........................................................... 12 1. Payday Loans Are Covered by the Truth in Lending Act ........................................................... 13 2. Disguising Payday Loans Through Sham Transactions ........................................................... 18 II. Criticisms of the Payday Loan Industry .......................... 25 A. Unfair and Unlawful Practices Before or At Contract Form ation ................................................... 26 1. The Cost of Payday Lending: Triple-Digit Interest Rates ......................................................... 26 2. Ohio Survey Shows Lenders Fail to Provide Basic Inform ation ................................................. 32 B. Egregious Practices Post-Consummation ................. 55 1. The Debt Treadmill: Rollovers .............................. 55 2. Inappropriate Collection Practices ....................... 77 III. Economic Realities and Current Law Permit Consumer E xploitation ...................................................................... 97 A. Demographic Data About Payday Loan Customers ...... 98 t Assistant Professor of Law, The Ohio State University Moritz College of Law. The author is grateful for thoughtful comments provided by Richard Alderman, Patrick Bauer, Douglas Berman, John Caskey, Ruth Colker, Thomas Crandall, Jean Ann Fox, Arthur Greenbaum, Michael Greenfield, Dennis Herrington, Louis Jacobs, Kathleen Keest, Robert Lawless, Alan Michaels, Mary Dee Pridgen, Allan Samansky, Deborah Schmedemann, and Douglas Whaley. The author received invaluable research assistance and secretarial support from Loraine Brannon, Kamau Edwards, Robert Feigel, Jeffery Harris, Denean Hill, Raymond Keyser, Arleesia McDonald, Carol Peirano, James Sarconi, and Michele Whetzel-Newton. Thanks to the University Seed Grant Program at The Ohio State University for providing the funding for the author's study of payday lenders in Franklin County, Ohio.

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