Faculty Advisor

Ault, Holly Keyes

Faculty Advisor

Foo, Katherine


Our project goal was to propose initiatives for the Danish Consumer Council which would protect consumers from excessive indebtedness. Payday loans are short term, high interest loans which are intended for emergency expenses. These loans can trap consumers in a cycle of debt if not paid off on time. We found that the three major reasons for payday loan indebtedness are: consumers are trapped in a cycle of debt, payday lenders are running a delinquency intensive business, and payday loan advertisements are targeting impulsive consumers. To address these three problems, we proposed a multi-pronged solution consisting of four initiatives: a credit database, advertising limits, 48-hour cool-off, and a charge cap. We also recommend requiring lenders to disclose more loan usage information.


Worcester Polytechnic Institute

Date Accepted

October 2018

Project Type

Interactive Qualifying Project



Advisor Department

Mechanical Engineering

Advisor Department

Interdisciplinary Programs