Check Into Crime: Payday-Lending Leads to Violence, Study Says

By OLSEN EBRIGHT

Updated 3:45 PM PST, Mon, Nov 2, 2009

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KXAS

A high concentration of payday-lending businesses leads to higher violent crime rates, according to researchers at Cal State Northridge and The George Washington University.

The study was released Monday and focused on Seattle, "a city that has seen a typical increase in the number of payday lenders," according to the study.

Even after accounting for other factors, there was still a statistically relevant link between higher rates of violent crime and the concentration of payday-lending businesses, according to the study.

Researchers offered several policy recommendations as part of the study, which has been posted online.

First Published: Nov 2, 2009 3:14 PM PST

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{"totSize":3,"payload_type":"json","status":"1","results":[{"anonName":null,"pathToMedia":"390259_68733272","adminTags":null,"views":223,"createdBy":7918844,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Check Into Crime: Payday-Lending Leads to Violence, Study Says","parentThreadId":null,"mediaId":2633595,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"3 Nov 2009 21:45:11 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":3,"reviewed":true,"createdByUsername":"anonymous_user","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1177119","subject":"","averageRating":0,"body":"I've read this study and am wondering if Seattle has zoned these businesses out of the richer parts of town making it only possible for these types of businesses to locate in poorer or moderate income neighborhoods. Often times, locals aren't interested until someone who has never used this service complains that one is going into their neighborhood. Basic logic makes this entire study ridiculous. If one gives a loan to a poorer person, then one may be "feeding" a drug addict and increasing crime??? This is ridiculous and insulting to those who are not wealthy enough to have banks fighting for their business."},{"anonName":null,"pathToMedia":"390259_68733272","adminTags":null,"views":223,"createdBy":14054398,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Check Into Crime: Payday-Lending Leads to Violence, Study Says","parentThreadId":null,"mediaId":2633595,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"3 Nov 2009 21:59:38 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":3,"reviewed":true,"createdByUsername":"gebu","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1177228","subject":"","averageRating":0,"body":"Like any business, payday lenders locate near their customers - in middle classed neighborhoods. Poor people will not qualify for loans because they lack the capacity to repay. Does the author of the study know the difference between a check casher that makes very few loans and survives off other services, and a pure payday lender? I doubt it. Also, the last time I check, "correlation does not imply causation". I think the authors of this "study" need to study some more. I vote "sad" for the quality of this "study"."},{"anonName":null,"pathToMedia":"390259_68733272","adminTags":null,"views":223,"createdBy":7918844,"createdByPathToPhoto":"116995/icons/defaultMember_116995_portrait.jpg","assocMediaId":null,"mediaName":"Check Into Crime: Payday-Lending Leads to Violence, Study Says","parentThreadId":null,"mediaId":2633595,"tags":null,"anonSiteUrl":null,"assocMediaType":null,"createdAt":"17 Nov 2009 21:26:02 GMT","anonEmail":null,"isVisible":true,"approved":true,"numComments":3,"reviewed":true,"createdByUsername":"anonymous_user","pathToPreview":"","mediaType":"EXTERNALMEDIA","commentId":"1260762","subject":"","averageRating":0,"body":"There are so many disturbing things about this study and conclusion that I hardly know where to start. Attributing the existence of payday lending to crime is absurb and to me, makes it easy to also blame robbery on the presence of banks and obesity on the presence of restaurants. Payday lending is not equivalent to crime any more than shopping centers equal shop lifting. Not to mention the huge number of other factors that have to be considered when such a claim is made. I would like to assume that if there were small bank branches in each of the payday loan locations that the crime would be no less. It's my conclusion that Kubrin, Squires and Graves had reached their conclusion before the "research" was even conducted. Unfortunately, I'm going to have to laugh at this one. "}],"error":"","totPages":1}