Payday Loan

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Payday Loan

A short-term loan expected to be repaid before the borrower's next pay day. Frequently, the borrower collateralizes a payday loan by presenting a postdated check for the amount of the loan (plus interest). The lender simply deposits the check on the agreed-upon date. Interest rates on payday loans are notoriously high.
References in periodicals archive ?
The Justice Department and the Federal Deposit Insurance Corporation (FDIC) have been exploiting a secretive federal anti-fraud initiative to deter banks from doing business with disfavored industries, such as payday lending, a December report from the House Committee on Oversight and Government Reform found.
said while there is a role for the CFPB in addressing payday lending issues, many politicians do not understand the benefits of such loans because they do not need them.
Only a handful ban the practice, while the rest, like Oregon, allow payday lending but impose tight restrictions on interest rates.
ACAP on the fees and interest charged by payday lending firms is to go ahead in January in a move to protect borrowers from escalating debts.
Payday lending has emerged and grown into a major industry with customers measured in millions in just a few years.
Shadow treasury minister Catherine McKinnell, the Labour MP for Newcastle North, said seeing children advertise payday lending was "difficult to stomach.
Almost 800 people made complaints about payday lending in the 2012/13 financial year, compared with fewer than 300 in the previous year.
Tackling the increasing numbers of payday lending businesses and bookmakers will not only stop more people being driven into poverty but will help our town centres be more attractive places for people to live, work and visit.
Plans to reduce the numbers of payday lenders on the high street will be discussed at Scotland s first Payday Lending Summit in Glasgow today.
A report by the Institute for Public Policy Research (IPPR) said it supported "overdue efforts" to clamp down on "the worst practices in the payday lending sector".
Whereas most consumer advocates would prefer to ban or strictly limit high cost payday lending activity and address unfair/abusive lending practices, the CFPB must also be attentive to the impact of regulation on credit access for low-wage, credit-constrained payday borrowers.