How much will a. , payday loan cost?

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1 Aerreviewingthetermsoftheloan,youarenotrequiredtochoosethisloan,and mayconsiderotherborrowingopons,includingthoseshownonpage2ofthis document. Borrowed Interest Contract Rate: 10 % Fees Payback The loan information shown here is an example and may not reflect the actual fees and interest charged to a loan provided by the lender or credit access business. $ $0.95 $62.50 $ Howmuch willa $ day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $ $ $ $ HowLongCouldItTaketoRepayaLoan? Of 10 people who take out a new payday loan AskYourself... Isitnecessaryformeto borrowthemoney? 21/2peoplewillpaytheloanonmeand in1payment(typicallytwoweeks) CanIaordtopaythisloan backinfullintwoweeks? 2peoplewillrenewtheloan1or2mes WillIbeabletopaymyregular billsandrepaythisloan? 11/2peoplewillrenewtheloan3or4mes 4peoplewillrenewtheloan5ormoremes CanIaordtheextracharges, interest,andfeesthatmaybe appliedifimissorfailtomake payment? Adaptedfrom:Bertrand&Morse, InformaonDisclosure,CogniveBiasesandPaydayBorrowing, MiltonFriedmanInstuteforResearchinEconomics(Oct.2009). Dataprovidedaboveiscompiledfroma2008naonalsurvey;repaymentpaernsmaybedierent. Areothercreditopons availabletomeatthisme? TurnPage OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

2 HowDoesaPaydayLoanComparetoOtherOpons? CA/BA IP Theamountyouwillpayininterestfortheloan. TF Theamountyouwillpayinfeesforthisloan. TP Theamountyouwillpayifyourepaytheloanonme. $ $0.95 $62.50 $ LoanCalculation & CostComparison APR(APR) Theyearlyrateoftheinterestandfeesforthisloan. CreditCards SecuredLoans SignatureLoans % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans MostExpensive $0.61 $1.07 $1.91 $4.43$7.00 $15.42$16.99$35.00 AverageofInterest&Fees PaydayloansarecashadvancesprovidedtoaborrowertomeetÞnancialneeds.Asaborrower,youwillberequiredtosignaloanagreement thattellsyoutheamountyouhaverequestedtoborrow,theannualpercentagerate(apr)forthatloan,theamountofinterestandfeesthat maybechargedforthatloan,andthepaymenttermsoftheloan. Paydayloansmaybeoneofthemoreexpensiveborrowingopons availabletoyou.paydayloansmayalsobereferredtoascashadvance,delayeddepositordeferredpresentmentloans. ComplaintorConcern? IfyouwouldliketoÞlea concernorcomplaint regardingapaydayloan, contactthe Oceof ConsumerCredit Commissioner Looking for Information on Budgeting, Personal Savings, Credit Card Management, or other personal money management skills? Visit the OCCC s Financial Literacy Resource Page hp:// pages/consumer/educaon/ Financial_Literacy_Resources.html AddionalInformaon Youmayberequiredtowrite checksorauthorizewithdrawals frompersonalcheckingaccountsto coverpaymentsfortheloans. Youcancompareallloanopons availableandselecttheoponthat isbestforyou. Youcanavoidextrafeesandloan renewalcostsbynotmissing paymentsandbyrepayingloans onme. OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

3 Aerreviewingthetermsoftheloan,youarenotrequiredtochoosethisloan,and mayconsiderotherborrowingopons,includingthoseshownonpage2ofthis document. Borrowed Interest Contract Rate: 10 % Fees Payback The loan information shown here is an example and may not reflect the actual fees and interest charged to a loan provided by the lender or credit access business. $ $1.91 $ $ Howmuch willa $ day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $ $ $1, $1, HowLongCouldItTaketoRepayaLoan? Of 10 people who take out a new payday loan AskYourself... Isitnecessaryformeto borrowthemoney? 21/2peoplewillpaytheloanonmeand in1payment(typicallytwoweeks) CanIaordtopaythisloan backinfullintwoweeks? 2peoplewillrenewtheloan1or2mes WillIbeabletopaymyregular billsandrepaythisloan? 11/2peoplewillrenewtheloan3or4mes 4peoplewillrenewtheloan5ormoremes CanIaordtheextracharges, interest,andfeesthatmaybe appliedifimissorfailtomake payment? Adaptedfrom:Bertrand&Morse, InformaonDisclosure,CogniveBiasesandPaydayBorrowing, MiltonFriedmanInstuteforResearchinEconomics(Oct.2009). Dataprovidedaboveiscompiledfroma2008naonalsurvey;repaymentpaernsmaybedierent. Areothercreditopons availabletomeatthisme? TurnPage OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

4 HowDoesaPaydayLoanComparetoOtherOpons? CA/BA IP Theamountyouwillpayininterestfortheloan. TF Theamountyouwillpayinfeesforthisloan. TP Theamountyouwillpayifyourepaytheloanonme. $ $1.91 $ $ LoanCalculation & CostComparison APR(APR) Theyearlyrateoftheinterestandfeesforthisloan. CreditCards SecuredLoans SignatureLoans % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans MostExpensive $0.61 $1.07 $1.91 $4.43$7.00 $15.42$16.99$35.00 AverageofInterest&Fees PaydayloansarecashadvancesprovidedtoaborrowertomeetÞnancialneeds.Asaborrower,youwillberequiredtosignaloanagreement thattellsyoutheamountyouhaverequestedtoborrow,theannualpercentagerate(apr)forthatloan,theamountofinterestandfeesthat maybechargedforthatloan,andthepaymenttermsoftheloan. Paydayloansmaybeoneofthemoreexpensiveborrowingopons availabletoyou.paydayloansmayalsobereferredtoascashadvance,delayeddepositordeferredpresentmentloans. ComplaintorConcern? IfyouwouldliketoÞlea concernorcomplaint regardingapaydayloan, contactthe Oceof ConsumerCredit Commissioner Looking for Information on Budgeting, Personal Savings, Credit Card Management, or other personal money management skills? Visit the OCCC s Financial Literacy Resource Page hp:// pages/consumer/educaon/ Financial_Literacy_Resources.html AddionalInformaon Youmayberequiredtowrite checksorauthorizewithdrawals frompersonalcheckingaccountsto coverpaymentsfortheloans. Youcancompareallloanopons availableandselecttheoponthat isbestforyou. Youcanavoidextrafeesandloan renewalcostsbynotmissing paymentsandbyrepayingloans onme. OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

5 Aerreviewingthetermsoftheloan,youarenotrequiredtochoosethisloan,and mayconsiderotherborrowingopons,includingthoseshownonpage2ofthis document. Borrowed Interest Contract Rate: 10 % Fees Payback The loan information shown here is an example and may not reflect the actual fees and interest charged to a loan provided by the lender or credit access business. $ $2.87 $ $ Howmuch willa $ day, payday loancost? IfIpaythe loanin: 2Weeks 1Month 2Months 3Months Iwillhave topay: $ $1, $1, $1, HowLongCouldItTaketoRepayaLoan? Of 10 people who take out a new payday loan AskYourself... Isitnecessaryformeto borrowthemoney? 21/2peoplewillpaytheloanonmeand in1payment(typicallytwoweeks) CanIaordtopaythisloan backinfullintwoweeks? 2peoplewillrenewtheloan1or2mes WillIbeabletopaymyregular billsandrepaythisloan? 11/2peoplewillrenewtheloan3or4mes 4peoplewillrenewtheloan5ormoremes CanIaordtheextracharges, interest,andfeesthatmaybe appliedifimissorfailtomake payment? Adaptedfrom:Bertrand&Morse, InformaonDisclosure,CogniveBiasesandPaydayBorrowing, MiltonFriedmanInstuteforResearchinEconomics(Oct.2009). Dataprovidedaboveiscompiledfroma2008naonalsurvey;repaymentpaernsmaybedierent. Areothercreditopons availabletomeatthisme? TurnPage OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012

6 HowDoesaPaydayLoanComparetoOtherOpons? CA/BA IP Theamountyouwillpayininterestfortheloan. TF Theamountyouwillpayinfeesforthisloan. TP Theamountyouwillpayifyourepaytheloanonme. $ $2.87 $ $ LoanCalculation & CostComparison APR(APR) Theyearlyrateoftheinterestandfeesforthisloan. CreditCards SecuredLoans SignatureLoans % PawnLoans AutoTitleLoans PaydayLoans 16% 28% 82% 180% 450%590%700% LeastExpensive CreditCards SecuredLoans SignatureLoans PawnLoans Per$100borrowedover2weeks AutoTitleLoans PaydayLoans MostExpensive $0.61 $1.07 $1.91 $4.43$7.00 $15.42$16.99$35.00 AverageofInterest&Fees PaydayloansarecashadvancesprovidedtoaborrowertomeetÞnancialneeds.Asaborrower,youwillberequiredtosignaloanagreement thattellsyoutheamountyouhaverequestedtoborrow,theannualpercentagerate(apr)forthatloan,theamountofinterestandfeesthat maybechargedforthatloan,andthepaymenttermsoftheloan. Paydayloansmaybeoneofthemoreexpensiveborrowingopons availabletoyou.paydayloansmayalsobereferredtoascashadvance,delayeddepositordeferredpresentmentloans. ComplaintorConcern? IfyouwouldliketoÞlea concernorcomplaint regardingapaydayloan, contactthe Oceof ConsumerCredit Commissioner Looking for Information on Budgeting, Personal Savings, Credit Card Management, or other personal money management skills? Visit the OCCC s Financial Literacy Resource Page hp:// pages/consumer/educaon/ Financial_Literacy_Resources.html AddionalInformaon Youmayberequiredtowrite checksorauthorizewithdrawals frompersonalcheckingaccountsto coverpaymentsfortheloans. Youcancompareallloanopons availableandselecttheoponthat isbestforyou. Youcanavoidextrafeesandloan renewalcostsbynotmissing paymentsandbyrepayingloans onme. OFFICIALSTATEOFTEXASNOTICE:Thisconsumerdisclosurehasbeenprovidedin accordancewithsecon ofthetfc.formrev:december2012