Complaints against payday loans decreased by 21 percent from July to September 2015 (458 complaints) to July to September 2016 (363 complaints), according to the Consumer Financial Protection Bureau's (CFPB) October consumer complaint report. This is the ninth straight report payday loans have shown the largest decline in complaints of any product tracked by the CFPB.
Continued, Steady Decline Evidence that Consumers Value Short-term Loans
This is the fourteenth report in a row in which payday loans have seen a double-digit decline:
- Vol. 16; October 2016: 21 percent decline
- Vol. 15; September 2016: 18 percent decline
- Vol. 14; August 2016: 19 percent decline
- Vol. 13; July 2016: 15 percent decline
- Vol. 12; June 2016: 15 percent decline
- Vol. 11; May 2016: 19 percent decline
- Vol. 10; April 2016: 14 percent decline
- Vol. 9; March 2016: 14 percent decline
- Vol. 8; February 2016: 12 percent decline
- Vol. 7; January 2016: 11 percent decline
- Vol. 6; December 2015: 14 percent decline
- Vol. 5; November 2015: 20 percent decline
- Vol. 4; October 2015: 24 percent decline
- Vol. 3; September 2015: 12 percent decline
Overall, payday loans account for just 1.6 percent of all complaints.
According to the Wall Street Journal, the CFPB has received over a million comments surrounding its proposed payday lending rule, the vast majority of which appear to be from consumers who have utilized payday loans and who do not want the Bureau limiting their access to credit. Combined with the record low levels of complaints raised through the CFPB's portal, it is clear that if the Bureau moves forward with its proposed rule, it will be substituting its own paternalistic bias for the will of the consumers it claims to be protecting.