What percentage of payday loan consumers pay back their loans?

Before going to collections? After going to collections?

There is a lot information on borrow demographics, laws and regulations regarding payday structures, and other consumer-centric metrics around these types of loans, but I'm having a hard time finding statistics regarding the amount of consumers paying back their loan to understand the risk that lenders take on providing these loans to often deep-subprime borrowers.

  • 3
    I'm voting to close this question as off-topic because it is not about personal finance. Mar 22 '20 at 3:20
  • 1
    @DilipSarwate While I understand your concern to the relevancy of this community, I disagree to have this closed. 12 million Americans use these loan vehicles and their predatory rates frequently have a drastic impact on these consumers' personal financial well-being. I personally think understanding the risk that lenders are taking on is important to examining why these lenders are permitted to charge an average of 369% APY on these loans.
    – S.B.
    Mar 22 '20 at 3:31
  • @S.B. Worldwide, or for a specific country? If the US, laws vary by state so each will have different repayment rates (where interest rates are capped lenders have to be more cautious, etc). Too broad if not altogether off-topic. In CO, the average interest rate was ~129% but is now capped at 36%, so far fewer loans are being issued.
    – Hart CO
    Mar 22 '20 at 4:07
  • The article 5 Alarming Stats about Payday Loans gives some relevant statistics.
    – not-nick
    Mar 22 '20 at 4:20
  • @HartCO Either or, although US typically seems to have the most in depth borrower related information. I’m shocked to find it this difficult to identify the lenders risk, but perhaps the reason for the lack of information is because lenders, often private, do not want to expose the lack of risk their taking. Consensus seems to be this is not related to personal finance, please feel free to close if this is the case.
    – S.B.
    Mar 22 '20 at 4:27

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