academic deception
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EXECUTIVE SUMMARY
Campaign for Accountabilitys (CfA) new report, Academic Deception, reve
payday lending industry trade association paid for and edited a con
academic paper claiming that payday loans do not leave consumers trapped
of debt.
Background
Payday lending is a $46 billion industry that is frequently reviled as b
consumers with debts from which they cannot escape. The Consumer
Protection Bureau (CFPB) has found most borrowers renew their loans so m
that they pay far more in fees than the amount of money initially borrowed, e
trapping them in an endless cycle of debt.
Aware that the CFPB would eventually seek to regulate payday lending, the
has ramped up lobbying and campaign donations. Less transparently, on
lender, Dollar Financial Group, funded the Consumer Credit Research Fo
(CCRF), which, in turn, has financed academic research designed to
arguments against regulation.
CfAs Open Records Requests
In July 2015, CfA filed open records requests with Arkansas Tech University, K
State University in Georgia, George Mason University in Virginia, and the Un
California, Davis.
CCRF filed a lawsuit to prevent Kennesaw State from releasing any records a
in court in Georgia seeking the records
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Arkansas Tech released emails of College of Business Professor Marc Anthon
one of the authors of a 2011 paper on payday loans that concludes payday
not responsible for the cycle of debt.
Key Revelations from the Arkansas Tech University Documents
CCRF paid Prof. Fusaro, at least $39,912 to prepare a report entitled, D
Loans Trap Consumers in a Cycle of Debt? Prof. Fusaros co-author, D
Cirillo, the President of Cypress Research, billed CCRF directly for
associated with the study, though the amount she requested is unkno
CCRF Chairman Hilary Miller received and edited drafts of the stud
email to Dr. Cirillo, Prof. Fusaro defended the arrangement, stating,
most part, Hillarys comments did not undermine the integrity of t
(emphasis added).
Mr. Miller directed Prof. Fusaro to remove negative information abou
lenders from the report. When Dr. Cirillo discovered payday loan
often had massive debit card overdrafts the month before seeking
loan, she emailed Prof. Fusaro that Mr. Miller was not too happy a
finding and had told her it wasnt the objective of the study. Pro
agreed not to include it in the report.
Mr. Miller instructed Prof. Fusaro to delete any acknowledgemen
played by representatives of payday lenders in producing the report.
Mr. Miller dictated and financed the press strategy for the report. In
to Prof Fusaro, Mr. Miller instructed him to identify Arkansas Tech as t
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INTRODUCTION
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