Climate change driving demand for predatory loans, research shows

Study connects heatwaves and cold snaps to surges in payday lending, keeping people in debt and harming communities of color

Two competing payday loan stores stand on the corners of an intersection in south Los Angeles. An area of persistent poverty, south LA is also a banking desert where payday lenders fill the gap. Long lines form inside the stores on the first of the month, when rent is due.

Guillermina Molina, a 60-year-old retired housekeeper, visits the same Speedy Cash each month. During the summer months – which are becoming increasingly hot – she runs her air conditioner but frets about her utility bills. “It’s kind of hard because the [power bill] is coming up too high because you gotta have the air conditioner on,” Molina said.