Payday Lenders Prepare for Less Risky Post-Pandemic Borrowing

Payday lenders who became unintended casualties of the pandemic are eagerly awaiting the end to most government relief programs, but those who follow the industry say some high-cost loans may never fully rebound.

Congressional passage over the past 18 months of enhanced unemployment benefits, federal stimulus payments, a moratorium on evictions, and student loan and mortgage forbearance lowered the need for high-cost credit. In fact, the number of payday loans plummeted in some states by more than 50%.

But most federal government supports are set to expire in the coming months or, as in the case of enhanced unemployment benefits ...