Golden, CO Payday Loans

Payday loans have been around in the United States since the Civil War, but they really gained popularity in the 1990s1. During this time, the payday loan market in the US grew from less than 500 stores to over 22,0001. The industry exploded and was valued at $46 billion1.

Today, payday loans are legal in 27 states1. Nine additional states allow some form of payday loans under set regulations1. Despite their popularity, payday loans have been criticized for their high interest rates and the potential to trap borrowers in a cycle of debt. In response to these concerns, some jurisdictions have enacted regulations to limit the annual percentage rate (APR) that payday lenders can charge2.

According to a 2007 study by economist Michael A. Stegman, payday loan firms were extremely rare prior to the 1990s, but have grown substantially since then3. A 2019 study found that payday loans in the United States "increase personal bankruptcy rates by a factor of two … by worsening the cash flow position of the household"3.

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