Are Bigger Companies Greater for Low Income Borrowers? Support from Payday and Title Loan Advertisements

A large number of lenders lead the payday lending and the title lending markets. Latest policy interference into these markets in Colorado has resulted into this ascendancy as some comparatively smaller lenders have shut down their business. The Consumer Financial Protection Bureau is about to take control over payday loans and thereby creates facilities for larger companies to gain more dominant place in this sector nationally. But before implementing regulations and laws that could strengthen involuntarily larger lenders, we humbly require to enquire: Are bigger companies greater for low-earning borrowers?


This piece of writing tries to answer this query by providing solid proof from the research of the advertisements on 189 payday lending businesses and title lending storefronts in Houston, Texas and 30 lender websites. I sort out miscellaneous result by tracing the opinions of payday and title lending counterparts regarding what is “congenial” for low income loan receivers. On some of the statistics I applied ensure large lenders seem more congenial for low earning borrowers, but for the rest, small lenders execute better. For example, during my study many large companies were in conformity with Texas law but a huge number of big companies stimulated above average interests for loans.


Furthermore, larger companies were mostly in favor of having pictures of racial minorities on their sites. On the contrary, a smaller amount of companies had websites subjugated by pictures of women.


Moreover, apart from distinguishing large and small money lenders I provide common data regarding payday and title lending advertising. I general, I sorted out a low level of conformity with Texas disclosure laws. In addition, I brought into light the unswerving allege in the literature though there is considerable price discrimination among lenders in Houston. At last, the pictures on the websites are mostly females from a marginal group which suggests that conceivably lenders are more focusing and targeting on these audiences.