Pay day loan group paid KSU for favorable research, documents reveal

Pay day loan group paid KSU for favorable research, documents reveal

Georgia considers pay day loans therefore dangerous to borrowers that they’re prohibited within state lines. U.S. army officers testified before state lawmakers that the interest that is high short-term paycheck improvements drown sailors and soldiers with debt. At one point, the U.S. customer Financial Protection Bureau, a federal customer watchdog agency, planned a crackdown.

When a Kennesaw State University research determined that borrowers whom remove a string that is long of loans fare a lot better than those whom don’t, industry advocates tried it to fight down the prepared crackdown. A Washington, D.C., lobbyist hand-delivered the report to an administrator that is key the federal agency days before its general general general public launch, recently-released KSU e-mails reveal.

It was no ordinary study that is academic.

The customer Credit analysis Foundation, a group run by a cash advance industry|loan that is payday backer, gave KSU $30,000 when it comes to research, payable upon conclusion associated with the paper, in accordance with a consulting contract acquired by The Atlanta Journal-Constitution. Continue reading «Pay day loan group paid KSU for favorable research, documents reveal»