Join the Center for Responsible Lending’s (CRL) Research Team on April 9 at 3pm ET / noon PT to discuss the key findings in CRL’s new research report Not Free: The Large Hidden Costs of Small-Dollar Loans Made Through Cash Advance Apps. This report, which is based in part on financial transactions data from a panel of low- to moderate-income consumers, illuminates how cash advance apps, such as earned wage advance apps, affect financial wellbeing.

Come join us to hear how the report details the high cost of these advances and reveals that on average consumers incurred checking account overdrafts more frequently after starting to use a cash advance app. Key findings in the report include:

• Overdrafts on consumers’ checking accounts increased 56% on average after a consumer started to use an advance product. 
   
• Consumers took out advances repeatedly, and using multiple lenders is common. Three quarters (75%) took out at least one advance on the same day or day after making repayment. 
   
• Consumers taking out small amounts of cash paid a high price. The average Annual Percentage Rate for an advance repaid in 7 to 14 days was 367%, nearly as much as the APR on a payday loan (400%). 
   
• Many low- to moderate-income consumers are already struggling to meet their expenses and repaying advances makes it harder to catch up or save. 
   

The Center for Responsible Lending (CRL) is a leading nonprofit, nonpartisan organization focused on financial fairness and opportunity. Fighting for economic justice for low- and middle-income families, military personnel and veterans, women, seniors, and people of color is our mission and highest priority.

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