University of New Mexico School of Law
             Albany Law School

    For 48% of new payday loans, borrowers paid them off with either one or no
    renewals, the study found. But 22% of loans were renewed at least six times.

    Our central concern here is not with every payday loan
    made to a consumer,” Mr. Cordray said. “Some such loans should be available.
    Our concern instead is that all too often those loans lead to a perpetuating
    The CFPB is currently deliberating how to structure regulations for the payday
    loan industry and will likely unveil a proposal later this year.

    The industry and regulators are trying to determine how the regulator’s actions
    could impact industry that made around $46 billion in loans last year.
    Jaret Seiberg, an analyst with Guggenheim Partners, said in
    a note to clients the agency is likely to limit some consumers’ ability to roll over
    loans into new ones. The agency may allow borrowers to convert payday loans
    into longer-term loans, known as “installment loans,” Mr. Seiberg said.