Taming the Beast: Payday Loans, Regulatory Efforts, and Unintended Consequences

Authors

Mary B. Spector, Southern Methodist University, Dedman School of LawFollow

Abstract

This Article examines the payday loan phenomenon, reviews state and federal attempts to regulate it, and explores its most recent appearance under the protection of state CSO laws designed to protect overextended consumers. Part II examines the transaction and the parties involved: what is a payday loan; who makes them; and who are the customers? Part III describes state and federal attempts to regulate payday lending. Part IV explores states' attempts to protect credit-seeking consumers with laws designed to regulate CSOs and the payday loan's emergence between the lines of this regulation. Part V concludes with some thoughts on approaches to tame the Hydra once and for all.

Publication Title

DePaul Law Review

Document Type

Article

Recommended Citation

Mary Spector, Taming the Beast: Payday Loans, Regulatory Efforts, and Unintended Consequences, 57 DePaul L. Rev. 961 (2008)