The CFPB issued a new report in its Making Ends Meet series. In this report, the CFPB finds that
consumers who use a payday, auto title, or pawn loan in one year are often still using that type of loan a year later. Some users of these services have lower cost credit available on credit cards, while others lack access to traditional credit. Among payday, auto title and pawn loan borrowers who experience significant financial shocks, the costs of these shocks often exceed other possible sources of funds.
Other CFPB reports in the Making Ends Meet series studied consumers’ status before the pandemic, their savings and preparation for emergencies, the credit card debt of financially vulnerable consumers during the pandemic, and how financial status has changed during the initial months of the pandemic. The Bureau noted that “the next wave of the Making Ends Meet survey is underway and will help us better understand how consumers have fared since June 2020.”
Eric J. Ellman is Senior Vice President for Public Policy and Legal Affairs at the Consumer Data Industry Association (CDIA) in Washington, DC. He also served for eight months as Interim President and CEO of the Association. More