academic deception

7/24/2019 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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