Industry Research
In recent years, a great deal of research has been conducted on
issues surrounding underbanked and unbanked consumers, including the
products and services they use and their preferences. Some of this has
been generated by FiSCA; in addition, a variety of other, third-party
research is available. Both are available below:
FiSCA Research
The FDIC Small Dollar Loan Pilot Program: A Case Study
of a Misguided Approach to Satisfying Consumers' Need for Small Dollar
Credit
FiSCA, October 2009
FiSCA has prepared an extensive analysis and critique of the
FDIC’s two-year Small Dollar Loan Pilot Program based on the
agency’s mid-term report which was issued earlier this year. The
FiSCA report: “The
FDIC Small Dollar Loan Pilot Program: A Case Study of a Misguided
Approach to Satisfying Consumers' Need for Small Dollar
Credit,” identifies a number of shortcomings with the pilot
program and reasons why the program is likely to be unsuccessful.
Read press release here
The Cost of Providing Payday Loans in a U.S. Multi-line
Operator Environment
Ernst & Young, September 2009
In order to address unsubstantiated claims
regarding the cost of small, short-term loans, also known as payday
advance (PDA) loans, Financial Service Centers of America, Inc. (FiSCA)
engaged the firm of Ernst & Young LLP to perform an economic survey
analysis of the cost to provide consumers with this form of credit
through stores that offer many other financial products as well (also
known as multi-line operators). The data obtained through this
nationwide survey of FiSCA members clearly illustrates that payday loans
are priced fairly and equitably for consumers seeking small dollar loans
to address unexpected financial shortfalls.
Read press release here.
FiSCA "Economic Inclusion" Advocacy Program
On October 24th 2007, at the invitation of FDIC Chairman Sheila Bair,
FiSCA representatives Chairman Joe Coleman and Patricia Cirillo, PhD, of
Cypress Research Group, appeared before the FDIC Committee on Economic
Inclusion (comE-IN), to speak on the topic “Money Services
Businesses – Access to the Banking System.”
In preparation for this meeting FiSCA created a powerful and
comprehensive document for the Committee members detailing the Financial
Service Center industry; history, business model, customers and their
activity with us, and more.
Highlights of this document (download below), "Economic Inclusion:
Meeting the Financial Needs of Low-and Moderate-Income Consumers Through
Financial Service Centers" include:
-
A statistical overview of the Financial Service Center industry,
its size, volume and scope as well as its customers and their
satisfaction ratings of the industry, based on statistics, never before
available
-
A discussion of the differences between the bank and FSC business
models
-
An overview of FiSCA’s Consumer Empowerment Program
-
A discussion addressing bank discontinuance issues.
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Ten proposals made by FiSCA to comE-IN
-
Three studies referenced within the presentation
Click to download presentation, or
document by section:
Document
PowerPoint Presentation
Independent Research
A number of independent studies and research papers have been
conducted on various aspects of the alternative financial service center
industry, its products and/or its customers. Examples of that industry
research can be found below:
Restricting Consumer Credit Access: Household Survey
Evidence on Effects Around the Oregon Rate Cap*
By Jonathan Zinman
Click here for
more information (PDF)
Payday Holiday: How Households Fare after Payday Credit Bans
By Donald P. Morgan and Michael R. Strain (staff report from
the Federal Reserve Bank of New York)
Click here for more information (PDF)
Defining and Detecting Predatory Lending
By Donald P. Morgan and Samuel G. Hanson (staff report from the
Federal Reserve Bank of New York)
Click here for more information
Bank Fees: Federal Banking Regulators Could Better Ensure that
Consumers have Required Disclosure Documents Prior to Opening Checking
or Savings Accounts
GAO study issued January 2008 (GAO-08-281)
Click here for more information (PDF)
Serving the Financial Needs of Low-income
Consumers
By James R. Wells, Jr.
Click here for more information (PDF)
Payday Lending: Do Outrageous Prices Necessarily Mean
Outrageous Profits?
By Aaron Huckstep, Fordham University School of Law
Click here for more information
Give Credit Where Credit Is Due
Increasing Access to Affordable Mainstream Credit Using Alternative
Data
By Michael A. Turner, Alyssa Stewart Lee, Ann Schnare, Robin
Varghese, and Patrick D. Walker
Click here for more information
Payday Lending and Public Policy: What Elected Officials
Should Know
By Tom Lehman, Ph.D., Associate Professor of Economics Indiana
Wesleyan University
Click here for more information
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