“Assessing the Optimism of Payday Loan Borrowers”

That's the title of this article by Ronald Mann. Here's the abstract:

This essay compares the results from a survey administered to payday
loan borrowers at the time of their loans to subsequent borrowing and
repayment behavior. It thus presents the first direct evidence of the
accuracy of payday loan borrowers’ understanding of how the product will
be used. The data show, among other things, that about 60% of
borrowers accurately predict how long it will take them finally to repay
their payday loans. The evidence directly contradicts the oft-stated
view that substantially all extended use of payday loans is the product
of lender misrepresentation or borrower self-deception about how the
product will be used. It thus has direct implications for the proper
scope of effective regulation of the product, a topic of active concern
for state and federal regulators.

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