Kelly Schore

Professor Brenczewski

English 102-254

25 February 2015

Annotated Bibliography of Payday Loans

This bibliography contains articles that discuss the positives and negatives that are

associated with payday loans. Some topics that are mentioned frequently include debt, interest

fees, creditors, and loans. There is also discussion from both sides of the argument regarding

whether payday loans are harmful and are scams, or if they are beneficial.

DeConto, Jesse James. "Lending With Grace: Breaking The Cycle Of Payday Loans."

The Christian Century 13 (2012): 28. General OneFile. Web. 5 Mar. 2015.

DeConto’s article focuses on the problems associated with payday loans. He disputes

that payday loans are essentially a modern form of usury, and that the primary issue is that

people who take out loans do not have the funds to pay off the loan. DeConto discusses that

people have rent and utilities to pay first, and then after the bills are paid they do not have

enough money to pay off the loan. This only digs a deeper hole, as the interest rates are

extremely high, making the loan almost impossible to pay off. DeConto’s article is suitable for

readers who are interested in payday loans. There is a good portion of recent statistical findings,

which is ideal for research on payday loans.

Hudson, Jatika. "Payday loans: the modern day loan sharks." The Crisis (Baltimore, MD) 2013:

General OneFile. Web. 26 Feb. 2015.

Hudson discusses the potential for huge financial dangers that come with payday loans.

She disputes that while payday loans may seem like a quick fix to a financial situation, most
people who take out payday loans stay in poverty. This is because they do not have the money to

pay off the loan. She also discusses that often times people with payday loans end up owing

more money than the initial loan they took out. The article appeals to people who do not

understand the dangers of payday loans. While Hudson’s article contains a few statistics that are

ideal for research on payday loans, most of her sources that are listed are outdated, which makes

them unreliable.

Hudson, Michael. "Cashing In On Poverty. (Cover Story)." Nation 262.20 (1996): 11. MAS
Ultra

- School Edition. Web. 26 Feb. 2015.

Hudson’s article describes the various types of payday loans that people on the low

economic status get, and why there are dangerous. He describes loans as pit-fall like debt traps,

and also talks about how loaners are charging people more than the item is actually worth.

Hudson claims there is a need for consumer education on economics, and that loan sharks need

to be confronted. The article appeals to any reader that wants to learn more about the dangers of

payday loans. His article has a timeline of statistics which show how payday loans have changed

over time. These various statistics are extremely helpful when researching the history of payday

loans, as the way they work today is very different than how they worked even a decade ago.

KIRSCH, LARRY, ROBERT N. MAYER, and NORMAN I. SILBER. "The CFPB And Payday

Lending: New Agency/Old Problem." Journal Of Consumer Affairs 48.1 (2014): 1-16.

Business Source Elite. Web. 26 Feb. 2015.

Kirsch’s article focuses heavily on the Consumer Financial Protection Bureau, and the

pros and cons that are associated with the CFPB and payday loans. Kirsch disputes that if the

CFPB goes through with proper regulations and new rules, payday loans can be a positive thing
to consumer’s who need the loans. He furthers that the CFPB using new legal principles and

establishing protection for vulnerable consumers is also part of the regulations needed. Kirsch’s

article is suitable for any reader, and provides a good amount of information on CFPB. It is not

completely good for research on payday loans, as it focuses mostly on the CFPB.

Martin, Nathalie. "THEMED ISSUE: FINANCIAL PRODUCTS: 1,000% Interest - Good While

Supplies Last: A Study Of Payday Loan Practices And Solutions." Arizona Law Review

52.(2010): 563. LexisNexis Academic: Law Reviews. Web. 26 Feb. 2015.Mann, Ronald J.
"Just Until Payday." UCLA Law Review 54.(2007): 855. LexisNexis Academic:

Law Reviews. Web. 26 Feb. 2015.

Martin’s law review focuses closely on the customers of payday loans, and what

consumers thought processes are when taking out loans. She disputes that is it not always the

loans that are the problem, but actually the customers. Martin claims a majority of people who

take out payday loans use it to pay regular bills, and not actual financial emergencies. This

causes a problem as the high interest fees make paying the bills impossible. She also discusses

that a lot of the problems with payday loans come from the consumers not doing proper research

on payday loans and location, and then wind up in financial trouble. Martin’s article is beneficial

for all readers, and especially those who do not understand how payday loans work. Her article

is excellent for research because of all the very recent data and statistic it contains on the topic.

Mattera, Philip. "Payday Predators Become The Prey." Social Policy 44.3 (2014): 65.

MasterFILE Premier. Web. 26 Feb. 2015.

Mattera’s article takes an interesting approach to payday predators by discussing how it is

actually the loan shark that loses, and not who is it preying on. There is close federal monitoring

on payday loans, and also instances of loan predators having to pay millions in returns to

customers. Mattera discusses that payday predators are also causing many lawsuits, and cannot
practice business and give out loans in many states. This article is suitable for readers who want

to learn more about justice being brought to loan sharks. Regarding research, there are some

good examples of statistics and recent rulings on payday predators.

Mayer, Robert, American political science professor. "Loan Sharks, Interest-Rate Caps, And

Deregulation." Washington And Lee Law Review 2 (2012): General OneFile. Web. 26

Feb. 2015.

Mayer’s law review looks at the history of loan sharks with payday loans, and the other

controversial versions of payday loans that are dangerous to consumers. Mayer disputes that

there is so much emphasis on loan sharks when it comes to payday loans, but actually looking

closely loan shark activity has reduced over the last several decades. He claims that there are

credit lending products that are more lucrative than actual payday loans. Mayer’s law review is

helpful for any reader that wants to learn more about the history of loan sharks. The data and

history Mayer has included is also good for researching payday loans.

Molina, Liana. "Stop Financing Payday Loan Sharks." American Banker 177.8 (2012): 9.

Business Source Elite. Web. 26 Feb. 2015.

Molina takes a close look at payday loans and goes into detail about why she feels

payday loans are a lucrative business. She discusses that due to the high interest rates payday

loans contain, the loans are not actually helping those who need them. Molina believes that

payday loans should be closely supervised by the Consumer Financial Protection Bureau, in

order to prevent fraudulent activity and unfairness to consumers. Molina’s article is suitable for

all readers, especially those who do not know much about issues with payday loans. While she

includes some good recent data, the article does not contain enough for satisfactory research on

payday loans.
Shih, Jopei. "Payday Lending: A Thin Line Between Love And Hate." Faulkner Law Review 3.1

(2011): 37. Publisher Provided Full Text Searching File. Web. 26 Feb. 2015.

Shih’s law review discusses problems with payday loans, but also discusses how they are

positive to consumers. He also disputes over whether payday loans should be banned from

consumer use. Shih feels that while there are controversies with payday loans, banning them

will only cause trouble. He claims that the banning the loans only hurt people who need to use

payday loans, and that there will be a huge increase in individuals on welfare. Shih discusses

that a majority of people who use payday loans have a positive outcome. His law review is

useful for all readers, as it views both sides of an argument, and is also good for research because

of all the very recent data and statistics mentioned.

Stoesz, David. "Are Payday Loans Really Evil? Controversy, Regulation, And Innovation In The

Secondary Financial Services Market." Journal Of Sociology & Social Welfare 4 (2014):

Opposing Viewpoints in Context. Web. 26 Feb. 2015.

Stoesz’s article looks at the controversies associated with payday loans, and whether the

loans are evil or not. He feels that payday loans can indeed harmful for those in poverty,

however part of that issue is that low economic households have little options for funds other

than taking out payday loans. While Stoesz thinks that payday loans are mostly harmful, he also

thinks the loans can be good for emergencies. His solution to the payday loan issues is that more

financial opportunities need to be offered to those in poverty who need it. Stoesz’s article

appeals to all readers as it focuses on the pros and cons of payday loans. His article also contains

information on various payday loan programs, along with recent statistics which is good for

research.

Vestal, Shawn. "Formalized loan sharks are circling on Internet." Spokesman-Review, The
 (Spokane, WA) 11 Oct. 2014: Newspaper Source. Web. 26 Feb. 2015.

Vestal discusses how payday loans, like most things, are now available for access on the

internet, and there are serious consequences with the loans being online. These consequences

range from a 700% interest rate, to harassment from loaners, threats, and even fraud. Vestal also

discusses that the loans taken out become almost unpayable, as the high interest fees end up

costing more than the loan taken out. The payday loan industry preys on people who are not

savvy with money, and also the weak and vulnerable. Vestal’s article appeals to all readers, as

he provides new information on online payday loans. He also includes recent statistics that are

very helpful for researching payday loans.

Weise, Karen. "Most Payday Loans Go To Those With Old Payday Debts." Businessweek.Com

(2014): 2. Business Source Elite. Web. 26 Feb. 2015.

Weise goes into great detail about why a majority of people take out payday loans, and

that they are detrimental to those in debt. She claims that more than 80% of payday loans that

are taken out end up piled on top of another payday loan that is taken out shortly after the

original loan. It is an issue of not being able to afford paying back the original loan, so the

problem becomes bigger, as more payday loans are taken out. Weise’s article appeal to readers

that do not understand payday loans. Her recent statistics and information regarding the

Consumer Financial Protection Bureau provide satisfying and appropriate research opportunities.