{"id":527,"date":"2021-10-06T22:22:18","date_gmt":"2021-10-06T22:22:18","guid":{"rendered":"https:\/\/sites.sandiego.edu\/cpil-blog\/?p=527"},"modified":"2021-10-06T22:22:18","modified_gmt":"2021-10-06T22:22:18","slug":"annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic","status":"publish","type":"post","link":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/","title":{"rendered":"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic"},"content":{"rendered":"<h3>By Summer M. Bosse<\/h3>\n<p>On July 22, 2021, the Department of Financial Protection and Innovation (DFPI) released its <a href=\"https:\/\/perma.cc\/GQ2P-K2KP\">Annual Report of Payday Lending Activity Under the California Deferred Deposit Transaction Law<\/a> to the public. This report is required through the California Deferred Deposit Transaction Law, found in section 23026 of the Financial Code. The trend of the annual report revealed an overall decrease in payday lending amidst a global pandemic.<\/p>\n<p>Payday loan transactions occur when a consumer provides a lender a personal check for $300 or less. Upon receiving this check, the lender gives the consumer the money minus an agreed upon fee that, by law, cannot exceed 15% of the personal check amount. The lender then defers depositing the consumer\u2019s check for a specific period not exceeding 31 days.<\/p>\n<p>The data reporting period for this report ended December 31, 2020, with 144 of the 150 payday lender licensees reporting data from the calendar year in time to be included in the annual report. In the 2020 calendar year, fewer than 6.1 million payday loans were obtained, representing a 40% decline in loans and a 30% decline in customers since the 2019 calendar year. The dollar volume of payday loans in 2020 showed a decrease of 40%, a much more substantial decrease than the pattern of the past decade suggested. The loss of nearly half of payday loan dollar volume is believed to be due to the pandemic for a number of reasons that may include factors such as stimulus checks, loan forbearances, and growth in alternative financing options.<\/p>\n<p>In addition to the decrease of payday loans, the report indicates an increased dependence on electronic transactions and noncash financial products. Online payday loans accounted for one-third of all payday loans (2,066,113 loans) which represents 41% of customers. Cash disbursements decreased from 75.2% in 2019 to 64% in 2020, with 16% of licensees making payday loans over the internet.<\/p>\n<p>The report also indicates a need for the DFPI\u2019s regulation of the payday loan industry, as this industry is typically utilized by financially vulnerable Californians. \u00a0A majority of licensees (61.8%) reported serving customers who received government assistance, while 49% of customers had an average income of or below $30,000 and 30% of customers had an average income of or below $20,000. \u00a0In a <a href=\"https:\/\/perma.cc\/G6EX-52JH\">press release<\/a> addressing the annual report, acting Commissioner Christopher S. Shultz stated, \u201c[w]e continue to closely monitor all financial products marketed to those in desperate financial need.\u201d This statement is backed up by the data collected in this annual report, for instance, payday lenders collected roughly $250.8 million in fees on payday loans in 2020, a majority of which (66%) came from customers who made seven or more payday transactions during the year.<\/p>\n<p>During the time period this data was collected, DFPI did not have jurisdiction over debt collection. The California Consumer Financial Protection Law (CCFPL) was enacted on September 25, 2020, and conferred new authority to DFPI, allowing the Department to supervise and regulate \u201cconsumer financial products and services.\u201d DFPI\u2019s new authority over the debt collection industry is entwined with the payday loan industry, as represented in the annual report, 99% of payday loan licensees reported owning an outside collection agency.<\/p>\n<a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-facebook nolightbox\" data-provider=\"facebook\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Facebook\" href=\"https:\/\/www.facebook.com\/CPILUSD\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px;margin-right:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"Facebook\" title=\"Follow us on Facebook\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/facebook.png\" \/><\/a><a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-twitter nolightbox\" data-provider=\"twitter\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Twitter\" href=\"https:\/\/twitter.com\/cpilusd\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"twitter\" title=\"Follow us on Twitter\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/twitter.png\" \/><\/a>","protected":false},"excerpt":{"rendered":"<p>By Summer M. Bosse On July 22, 2021, the Department of Financial Protection and Innovation (DFPI) released its Annual Report of Payday Lending Activity Under the California Deferred Deposit Transaction Law to the public. This report is required through the <a class=\"more-link\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1013,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132948,137802],"tags":[137804,137805,137105,137103,137803,132883],"coauthors":[132864],"class_list":["post-527","post","type-post","status-publish","format-standard","hentry","category-department-of-business-oversight","category-major-publications-department-of-financial-protection-and-innovation","tag-annual-report","tag-ccfpl","tag-consumer-protection","tag-dfpi","tag-payday-loans","tag-regulation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic - Consumer Protection Policy Center - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic - Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"By Summer M. Bosse On July 22, 2021, the Department of Financial Protection and Innovation (DFPI) released its Annual Report of Payday Lending Activity Under the California Deferred Deposit Transaction Law to the public. This report is required through the Continue reading &rarr;\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"Consumer Protection Policy Center - Blog\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-06T22:22:18+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"author\" content=\"Katie Gonzalez\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"Katie Gonzalez\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\"},\"author\":{\"name\":\"Katie Gonzalez\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\"},\"headline\":\"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic\",\"datePublished\":\"2021-10-06T22:22:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\"},\"wordCount\":514,\"commentCount\":0,\"keywords\":[\"annual report\",\"CCFPL\",\"consumer protection\",\"DFPI\",\"payday loans\",\"regulation\"],\"articleSection\":[\"Department of Financial Protection and Innovation\",\"Major Publications\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\",\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\",\"name\":\"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic - Consumer Protection Policy Center - Blog\",\"isPartOf\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#website\"},\"datePublished\":\"2021-10-06T22:22:18+00:00\",\"author\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\"},\"breadcrumb\":{\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#website\",\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/\",\"name\":\"Consumer Protection Policy Center - Blog\",\"description\":\"We work to protect and advance a reality where every citizen is protected by a government that is ethical, accountable, and transparent.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69\",\"name\":\"Katie Gonzalez\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mmc97f81d333fa3b469936c6ead32ef1d5\",\"url\":\"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm\",\"contentUrl\":\"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm\",\"caption\":\"Katie Gonzalez\"},\"url\":\"https:\/\/sites.sandiego.edu\/cpil-blog\/author\/katie-gonzalez_gonzalez\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic - Consumer Protection Policy Center - Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/","og_locale":"en_US","og_type":"article","og_title":"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic - Consumer Protection Policy Center - Blog","og_description":"By Summer M. Bosse On July 22, 2021, the Department of Financial Protection and Innovation (DFPI) released its Annual Report of Payday Lending Activity Under the California Deferred Deposit Transaction Law to the public. This report is required through the Continue reading &rarr;","og_url":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/","og_site_name":"Consumer Protection Policy Center - Blog","article_published_time":"2021-10-06T22:22:18+00:00","author":"Katie Gonzalez","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Katie Gonzalez","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#article","isPartOf":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/"},"author":{"name":"Katie Gonzalez","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69"},"headline":"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic","datePublished":"2021-10-06T22:22:18+00:00","mainEntityOfPage":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/"},"wordCount":514,"commentCount":0,"keywords":["annual report","CCFPL","consumer protection","DFPI","payday loans","regulation"],"articleSection":["Department of Financial Protection and Innovation","Major Publications"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/","url":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/","name":"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic - Consumer Protection Policy Center - Blog","isPartOf":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#website"},"datePublished":"2021-10-06T22:22:18+00:00","author":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69"},"breadcrumb":{"@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/2021\/10\/06\/annual-dfpi-report-shows-significant-decline-of-payday-loans-amid-covid-19-pandemic\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/sites.sandiego.edu\/cpil-blog\/"},{"@type":"ListItem","position":2,"name":"Annual DFPI Report Shows Significant Decline of Payday Loans Amid COVID-19 Pandemic"}]},{"@type":"WebSite","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#website","url":"https:\/\/sites.sandiego.edu\/cpil-blog\/","name":"Consumer Protection Policy Center - Blog","description":"We work to protect and advance a reality where every citizen is protected by a government that is ethical, accountable, and transparent.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/sites.sandiego.edu\/cpil-blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/sites.sandiego.edu\/cpil-blog\/#\/schema\/person\/fdc87a266320b80c7a790bdc2a17df69","name":"Katie Gonzalez","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mmc97f81d333fa3b469936c6ead32ef1d5","url":"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm","contentUrl":"\/\/www.gravatar.com\/avatar\/367bf8ae36ed938af8637f2b96d85412?s=96&#038;r=g&#038;d=mm","caption":"Katie Gonzalez"},"url":"https:\/\/sites.sandiego.edu\/cpil-blog\/author\/katie-gonzalez_gonzalez\/"}]}},"_links":{"self":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts\/527","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/users\/1013"}],"replies":[{"embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/comments?post=527"}],"version-history":[{"count":1,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts\/527\/revisions"}],"predecessor-version":[{"id":528,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/posts\/527\/revisions\/528"}],"wp:attachment":[{"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/media?parent=527"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/categories?post=527"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/tags?post=527"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-json\/wp\/v2\/coauthors?post=527"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}