Oklahomans took out 803,675 deferred deposit loans in 2013 totaling more than
The number of payday lenders in the state also are in decline -- from 356 in 2010 to 290 in 2013, the data shows.
A decrease in storefront locations for payday lenders is part of a national trend in the industry, said
"The shrinking storefronts and decline of loan volume in
Company revenue stable
However, with a shrinking number of lenders and loans in the state, payday lenders made
"Payday lenders have sought to make up for a lack of growth by either making larger loans or charging more fees to try and squeeze more out of financially stressed consumers," Standaert said. "They are draining
It's not likely that
"It really is counter-intuitive, but a high unemployment rate does not help payday lending," Groff said.
That's because deferred deposit loan users borrow against future earnings, and loans are typically due on the borrower's next payday, Groff said.
Most lenders require users to verify employment before taking out a loan, he said.
"When employment rates go down, loan volume tapers off," Groff said. "It's not somebody who is on government assistance who is using these loans, that's not the reality of it."
Loans peaked in 2011
Payday lending in
More Oklahomans could have turned to payday lending after their financial resources and credit scores suffered during the last recession, said
"These are maybe people with credit blemishes coming out of the recession, people who have tapped into their resources and get their credit dinged," Shepelwich said. "Payday borrowers by definition have a bank account and have a job, but are still struggling to make ends meet at different times."
Many payday borrowers she counsels are operating in "crisis mode," and turn to payday loans as a last resort after they have exhausted all other options, she said.
"I am seeing people who basically have systemic financial problems -- this isn't the beginning of their problems when they turn to high-interest loans, it's been a progression to increasingly higher interest, less traditional lending options," Cash said. "What it looks like to me is a deterioration of their finances and of them being able to cope."
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