That may not be the most shocking headline, but the statistics say it’s true (Kentucky now tracks payday loans).

Page One has a summary of the data. The post also makes an argument for the proposed 36% cap on interest rates.

Lenders are definitely dependent upon repeat borrowers for the bulk of revenue, despite what lobbyist-backed legislators in Frankfort would have you believe. At least 83% of payday revenue has been generated by borrowers with five or more transactions this year. Just 2% of payday revenue is from customers who only acquired a single loan.

The database, as was spun last year, has not curbed use. Repeat borrowing is the rule, not the exception. And it’s costing Kentuckians millions of dollars.

Payday lenders have declined to attend a recent series of meetings on payday lending. They say a 36% annual interest rate cap would put them out of business, because their loans are designed for short-term use. The Kentucky Coalition for Responsible Lending (linked above) says while the loans may be short-term, they are often taken out in succession, as borrowers end up under a growing debt with just a few loans.