KFC, McDonald’s & more: The full list of payday loan scams
The Wall Street Journal reported Thursday that payday lenders are now the largest industry in the United States.
The Wall Street and Main Street Coalition (SWC), a trade group, said the payday loan industry is now worth $14.3 billion, with $3.7 billion in profits.
The group said that the industry has seen a $1.4 billion increase in annual revenue since 2007.
In 2008, the group said, payday lenders accounted for only $1 billion in total income, while payday loan lenders earned $7.7 million.
The SWC report also noted that in 2007, a total of 16.4 million Americans received a payday loan, including about 12 million who received a $300 loan.
Since then, the number of borrowers has more than doubled, with more than 12 million Americans now receiving a $600 or more payday loan.
The total number of payday loans in the U.S. increased by 6.5% last year.
The report comes just two weeks after the Financial Services Roundtable, an industry trade group representing lenders, warned that payday loan fraud is growing and has reached epidemic proportions.
This year, the FSB reported that the number and type of loans fraud is increasing at a staggering rate, reaching $8.5 billion in 2015.
In addition, the average length of time for consumers to be able to get back their money is up nearly 6-fold from about 10 months ago.