Payday Loans and the Secondary Financial Market

34 Pages Posted: 27 Mar 2012

See all articles by David Stoesz

David Stoesz

affiliation not provided to SSRN

Date Written: March 26, 2012


Pay day lending has become controversial as activists, such as the Center for Responsible Lending (CRL), attempt to restrict its growth. A review of information maintained by the Oklahoma regulatory authority reveals that CRL misrepresents data in order to further its reform agenda. As a component of alternative financial services, payday loans represent a Secondary Financial Market through which borrowers unable, or unwilling, to access the Primary Financial Market can obtain credit. Regulation of payday lending is a more pragmatic approach than prohibition.

Keywords: payday lending, alternative financial services, secondary financial market

JEL Classification: G20, D20, D31

Suggested Citation

Stoesz, David, Payday Loans and the Secondary Financial Market (March 26, 2012). Available at SSRN: or

David Stoesz (Contact Author)

affiliation not provided to SSRN ( email )

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