Payday Loan Customer Survey
~ Saskatchewan ~
Presented to:
Canadian Payday Loan Association
September 2007
Methodology
 The Canadian Payday Loan Association (CPLA) commissioned POLLARA to conduct a telephone survey
of payday loan customers in Saskatchewan to develop an understanding of payday loan customers’
perceptions of the payday loan industry.
 The CPLA represents 23 companies with 484 retail financial services outlets across Canada. Member
companies service nearly 2 million Canadians a year by providing short term loans in small amounts to
help cover unanticipated expenses.
 Lists of payday loan customers were provided by CPLA members. In total, 8,212 records were used for
this study.
 POLLARA conducted a total of 400 telephone interviews with payday loan customers in Saskatchewan
between August 27th and September 12th, 2007, resulting in an overall margin of error of plus or minus
4.9%, nineteen time out of twenty.
1
Key Findings
Profile of Respondent Payday Loan Customers in Saskatchewan
 The average age of respondent payday loan customers in Saskatchewan is 38 years.
 The vast majority are employed full-time (71%).
 About one-half (53%) of respondent payday loan customers have a post-secondary education from
community college (31%), university (19%) or post-graduate/professional programs (2%).
 On average, more than two-thirds (69%) of respondent payday loan customers normally borrow less than
$300 when they get a payday loan, on average.
 On average, customers in Saskatchewan borrow less than their counterparts in British Columbia
($381.14), Ontario ($349.53), New Brunswick and Nova Scotia ($312.61), and Manitoba ($300.05).
 Respondent payday loan customers would expect to pay, on average, $22 for interest and administration
fees to borrow $100 for two weeks.
 The average amount of money that respondent payday loan customers in Saskatchewan currently owe to
financial institutions, excluding mortgages, is $26,855.
 About one-half (49%) are married, while 14% are separated or divorced and 30% have never been
married.
 Respondent payday loan customers have household incomes generally on par with the general
Saskatchewan population. 53% of Saskatchewan residents report household incomes of less than
$50,000 a year, compared to 49% of respondent payday loan customers.
2
Key Findings
Profile of Respondent Payday Loan Customers in Saskatchewan (Continued)
 Almost all respondent payday loan customers currently have a debit card (90%) and a chequing account
at a bank or credit union (90%). Two-in-three (63%) have a savings account at a bank or credit union
and 54% have a major credit card. Less than one-in-four (21%) payday loan customers in Saskatchewan
currently have a home mortgage.
Payday Loans Companies vs. Other Financial Institutions
 Respondent payday loan customers provide payday loan companies with a similar average impression
rating as credit unions; and a higher average rating than credit card companies (payday loans companies
receive an average score of 6.2 and credit unions receive a score of 6.3 out of 10. Credit card
companies receive the lowest average impression rating at 5.8).
 Respondent payday loan customers in Saskatchewan provide payday loan providers with a higher
average impression rating than their counterparts in British Columbia (6.1), New Brunswick and Nova
Scotia (5.8), Ontario (5.5), and Manitoba (5.0).
 There is no significant difference in awareness of the approximate amount of money payday loan
customers pay for all fees for their loans with various financial institutions. A similar proportion of
respondents are aware of the approximate amount they pay for all fees, including administration fees and
interest charges on their payday loans (76%), for their various bank accounts (78%), credit cards (82%),
and their home mortgage (85%).
3
Key Findings
Why Payday Loans?
 According to the majority of respondents, the attraction of payday loans has to do with the process being
“quick and easy” (66%), while about two-in-five say the most important reason for their acquiring a
payday loan is because of more convenient locations (20%).
 Only 23% of respondent payday loan customers indicate that they use payday loans because they have
no other alternative sources for borrowing.
 The main reason for securing a payday loan, according to respondents, is that they needed money to pay
for necessities (52%). One-in-four (23%) say they needed a payday loan to help with an unexpected
expense, like a car or household expense.
 Almost all respondent payday loan customers in Saskatchewan report that they paid all the loans they
received in the past back on time (83%) or most of the loans back on time (11%).
Satisfaction with Payday Loan Experience
 On average, respondent payday loan customers rate their satisfaction with the customer service
representative who provided their loan at 8.1 out of 10.
 Also rated high is respondent satisfaction with their understanding of the terms of their payday loan and
when payment on the loan was due (8.0), and satisfaction with their overall customer service experience
(8.0).
 The majority of respondent payday loan customers in Saskatchewan think “fast”, “long hours of
operation”, “easy to use” and “convenient” best describe payday loan providers, compared to banks and
credit unions. Additionally, a higher proportion of respondent payday loan customers think “respectful to
me”, “good service” and “good value” best describes payday loan providers compared to credit unions.
4
Impressions of Institutions
 Respondent payday loan customers provide payday loan companies with a similar average impression
rating as credit unions; and a higher average rating than credit card companies (6.2, 6.3, and 5.8,
respectively).
Mean:
Home And Car Insurance Companies 13%
Credit Unions 11%
Payday Loan Companies
46%
24%
Banks
23% 3%2%2% 7.4
37%
32%
16%
31%
26%
32%
Credit Card Companies 9%
29%
0%
Very
Somewhat
Favourable (10) Favourable (7-9)
20%
Neutral
(4-6)
5% 6%
33%
33%
2%
5% 11%
20%
6.7
6.3
9% 9%1% 6.2
8% 9% 12%
5.8
40%
60%
80%
100%
Not Very
Not At All
Don’t Know/
Favourable (2-3) Favourable (1) Refused
Q3-7. I’d like to ask you some questions about different kinds of companies in Canada. Using a scale of 1 to 10,
where one is “not at all favourable” and ten is “very favourable”, how would you rate your impression of
each of the following groups of businesses in Canada? (READ AND ROTATE)
5
Financial Products or Services Ever Used
 About one-in-two respondent payday loan customers have used a car loan (56%), a personal loan with a
bank or a credit union (54%), or a line of credit (47%).
100%
A payday loan
A car loan
56%
A personal loan with a bank
or credit union
54%
A line of credit
0%
44%
45%
47%
51%
20%
40%
Yes
No
60%
80%
1%
2%
100%
Don’t Know/Refused
Q2A-D. Which of the following financial products or services have you ever had or used in the past? (READ AND
ROTATE LIST; ALLOW MULTIPLE MENTIONS)
6
Financial Products or Services Currently Use
 Nine-in-ten respondent payday loan customers currently have a debit card and a chequing account at a
bank or credit union (90%, respectively).
A debit card
90%
9%1%
A chequing account at a
bank or credit union
90%
9%1%
A savings account at a
bank or credit union
35%
63%
A major credit card, such as VISA,
MasterCard, AMEX
54%
45%
42%
Overdraft protection at your bank
1%
1%
2%
55%
A retail credit card, such as a Canadian
Tire Card, Sears Card, or a Gas Card
22%
77%
1%
A home mortgage
21%
78%
1%
0%
20%
40%
Yes
No
60%
80%
100%
Don’t Know/Refused
Q8A-G. Which of the following financial products or services do you currently have? (READ AND ROTATE LIST;
ALLOW MULTIPLE MENTIONS)
7
Satisfaction with Financial Services & Products
 Respondent payday loan customers in Saskatchewan are most likely to express satisfaction with their
debit card (providing an average rating of 8.4 out of 10).
 Satisfaction with payday loans is rated slightly lower (6.4) than the average score for retail credit cards
(6.8).
Mean:
9%1%1%1% 8.4
88%
Debit card
14%2%1%1%8.0
83%
Chequing account at a bank or credit union
13% 3%
79%
Overdraft protection at your bank
16%
2%4%3% 7.6
23%
1%1%2% 7.7
76%
Savings account at a bank or credit union
Home mortgage
72%
Personal loan with bank or credit union
67%
Credit card
67%
Retail credit card
65%
Line of credit
64%
19% 4%2%
Car loan
64%
21%
Payday loan
53%
0%
20%
Satisfied
(7-10)
40%
Neutral
(4-6)
4% 7.7
19%
3%3% 8%
3%
1%
1% 7.2
27%
23%
30%
7.4
5% 5%
3% 6.8
11%
7.4
4% 9%
2%
7.3
7% 10%
6.4
60%
80%
100%
Somewhat
Very
Dissatisfied (2-3) Dissatisfied (1)
Q9-19. Thinking about the following financial products or services overall, please tell me how satisfied are you with
each product or service that you use? Please use a scale from one to ten where 1 means you are “very
dissatisfied” and 10 means you are “very satisfied” with the product or service. (READ AND ROTATE)
8
Knowledge of Fee Payment
 The vast majority of respondent payday loan customers report that they are aware of the approximate
amount that they pay for all fees, including administration fees and interest charges on their mortgages
(85%), major credit cards (82%), savings and chequing accounts (78%), and payday loans (76%).
12%4%
85%
Your home mortgage
Your major credit card
82%
15% 3%
Your savings or chequing account at
a bank or credit union
78%
20% 2%
76%
Your payday loan
0%
20%
40%
Yes
No
21% 2%
60%
80%
100%
Don’t Know/Refused
Q20-23.Thinking about the various financial products that you hold, do you know the approximate amount that you
pay for all fees, including administration fees and interest charges on...? (READ AND ROTATE; What about
on...?)
9
Solution to Short Term Financial Need
 Two-in-five (43%) respondent payday loan customers in Saskatchewan say that they would use a payday
advance or payroll loan company if they needed $300 a few days before their next payday.
 On-in-three (34%) say they would borrow the money from a family member (20%) or a friend (14%).
Use A Payday Advance Or Payroll Loan Company
43%
Borrow From A Family Member
20%
Do Without/Wait Until Payday
17%
Withdraw Money From Savings Account
And Other Investments
15%
14%
Borrow From A Friend
10%
Get A Cash Advance From Credit Card
7%
Use Bank Over-Draft Protection/Line Of Credit
No Need/Never Short Of Cash
Borrow From An Employer
4%
2%
Payday Loan 1%
Other <1%
Don’t Know/Refused
0%
3%
20%
40%
60%
Q25. If you needed, say, $300 a few days before your next payday, what would you do? (DO NOT READ; PROBE: “Is
there anything else?”; ALLOW MULTIPLE MENTIONS)
80%
10
Reasons to Choose Payday Loan
 Two-in-three respondent payday loan customers report that the most important reason for choosing to
obtain a payday loan in the past, rather than using another source of credit was because it is a quick and
easy process (66%).
Quick And Easy Process
66%
No Other Alternative Source For Borrowing
23%
20%
A More Convenient Location
Discipline Of A Short Term Or No Revolving Debt
Forces Me To Pay It Back More Quickly
5%
Less Harm To My Credit
5%
Less Expensive Than Other Sources
Of Borrowing Cash
4%
Greater Privacy
2%
Necessity/Needed It/Emergency
2%
Other
5%
Don’t Know/Refused
5%
0%
20%
40%
60%
Q27. There are many reasons why people choose to obtain a payday loans instead of getting other financial products
or services. What was the most important reason you chose to obtain a payday loan in the past rather than using
another source of financing? (DO NOT READ LIST; PROBE: Any other reasons?)
80%
11
Reasons Payday Loans is Needed
 One-in-two (52%) respondent payday loan customers in Saskatchewan report that the main reason why
they needed a payday loan was because they needed emergency cash to pay for necessities.
For ‘Emergency’ Cash To Pay For Necessities
52%
To Help Out With An Unexpected Expense,
Like A Care Or Household Repair
23%
10%
To Buy Something You Wanted
6%
To Help Avoid Late Charges On Routine Bills
To Avoid Bouncing Cheques
3%
To Help Get Through A Temporary Reduction In Income
3%
All Of The Above <1%
Depends On Situation <1%
No Credit <1%
Don’t Know/Refused
0%
3%
20%
Q28. Which of the following was the main reason why you needed a payday loan? (READ LIST)
40%
60%
80%
12
Amount Normally Borrowed with Payday Loan
 On average, more than two-thirds (69%) of respondent payday loan customers normally borrow less
than $300 when they get a payday loan, on average.
100%
Mean: $266.41
80%
60%
53%
40%
20%
16%
15%
16%
0%
$1-$150
$151-$300
$301+
Don’t Know/
Refused
Q29. On average, how much money do you normally borrow when you get a payday loan? (ENTER DOLLAR
AMOUNT ONLY. NO CENTS)
13
Payday Loan Payments
 Four-in-five (83%) respondent payday loan customers in Saskatchewan report that they paid all the
loans they received in the past back on time, while 11% indicate that they paid most of the loans back
on time.
Paid Back None
Of The Loans
Paid Back Some
On Time
Of The Loans
2%
On Time
4%
Paid Back Most
Of The Loans
On Time
11%
Paid Back All The
Loans On Time
83%
Q30. Thinking about all the payday loans you received in the past, did you pay back all, most, some, or none of the
loans back on time?
14
Satisfaction with Payday Loan Experience
 The vast majority of respondents said they are satisfied with the way they were treated by the customer
service representative who provided their loan (81%), with their understanding of the terms of their
payday loan and when payment on the loan was due (75%), and with their overall customer service
experience (81%).
Mean:
The way you were treated by the customer
service representative who provided your loan
Your understanding of the terms of the loan and
when payment on the loan was due
0%
Very
Satisfied (10)
43%
42%
33%
20%
45%
14%2%3%1% 8.0
33%
14% 11%1% 5.8
36%
The overall customer service experience
The total cost of the payday loan, including
interest and administration fees
38%
17%
25%
20%
Somewhat
Satisfied (7-9)
40%
Neutral
(4-6)
60%
Somewhat
Dissatisfied (2-3)
13%2%2%1% 8.1
80%
2%2%
8.0
100%
Very
Dissatisfied (1)
Q31-34. Thinking about all the payday loans you received, please indicate your overall satisfaction with each of the
following attributes. Please use a scale from 1 to 10 where 1 means you are “very dissatisfied” and 10
means you are “very satisfied”. (READ AND ROTATE)
15
Attributes of Financial Institutions
 Respondent payday loan customers rank payday loan providers higher than banks and credit unions regarding
“fast”, “long hours of operation”, “easy to use” and “convenient”.
 A significantly higher proportion of payday loan customers think “respectful to me”, “good service” and “good
value” best describes payday loan providers compared to credit unions.
68%
Fast
63%
Long hours of operation
3%
4%
56%
Convenient
Respectful to me
29%
6%
Good service
29%
6%
0%
4%
59%
Easy to use
Good value
4%
21%
20%
2%
32%
35%
2%
38%
54%
2%
11%
55%
6%
2%
25%
10%
68%
40%
Payday Loan
Provider
Credit
Union
60%
Bank
4%
80%
100%
Don’t Know/
Refused
Q35-41. (READ AND ASK ALL) Now I would like you to think about three types of companies that offer cash
advances or loans, namely, banks, credit unions, and payday loan providers. I am going to read you a list of
attributes that you might consider when getting a cash advance or short-term loan, and I would like you to
tell me which of the three providers you think is best described by the attribute. (READ AND ROTATE)
16
Payday Loans & Related Issues
 Three-in-four (77%) respondent payday loan customers agree that since credit cards can be used at any
time, they should also be able to get a payday loan whenever they need it, as long as they repay the
loan. A similar proportion think that since banks may not provide short-term loans for small amounts,
Canadians who need or want these services should have the option of obtaining them from payday loan
providers (73%).
Mean:
Since credit cards can be used at any time, as long as
the credit limit is not exceeded, you should also be
allowed to get a payday loan whenever you need it, as
long as you repay the loan
Since the large banks may not provide short-term loans
for small amounts, Canadians who need or want these
services should have the option of obtaining them from
payday loans providers
If you take out a payday loan, the payday loan provider
should be able to share your personal financial
information with other lenders, banks and credit unions
42%
8% 9%
0%
Strongly
Agree (10)
35%
42%
Somewhat
Agree (7-9)
22%
20%
Neutral
(4-6)
17%1%3%1% 8.0
20% 1%4%2% 8.0
31%
53%
8%
40%
60%
Somewhat
Disagree (2-3)
80%
Disagree
Strongly (1)
Q42-44. I’m going to read you a list of statements. For each, please indicate whether you agree or disagree, using a
scale from one to ten where one means you “disagree strongly” and ten means you “agree strongly”.
(READ AND ROTATE)
1% 3.3
100%
Don’t Know/
Refused
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