Payday Loan

(redirected from Payday loans)

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 ?
50k of existing payday loans on the bks not included with the sale.
Borrowers must then take out another payday loan to pay off their previous payday loans, and a cycle of unsurmountable debt is initiated," Mike Brown at Research Analyst at LendEDU, said.
Payday loans are small loans generally in the $150 to $400 range, repayable in a few weeks when the borrower is expected to have received a paycheck or some other scheduled payment.
Senate Committee on Banking, Housing, and Urban Affairs praised the Consumer Financial Protection Bureaus (CFPB) rule to rein in predatory payday loans that often keep low-income borrowers trapped in a cycle of debt.
6) Supporters of payday lending praise both the speed at which payday loans can be executed as well as the availability of payday loans to those unqualified for alternative forms of credit.
Likewise, this can be a stage where people simply watch some great benefits of Bad credit payday loans.
Sean heads up the Stanley Street based Refund You Solicitors, who seek compensation for the vast numbers of young people who are mis-sold payday loans.
With very high interest rates of 45%-50%, payday loans are given in advance of the next pay cheque and cater to blue collar workers, who are paid on a weekly basis.
A survey of more than 400 people who had tried to use payday loans revealed that one in four had not, or could not remember, being asked questions about their financial situation or ability to repay a loan.
Nearly all states regulate the industry, 13 states have made payday lending effectively illegal, and an additional five states have imposed severe restrictions on the interest that can be charged on payday loans.
Since April this year, Kirklees Citizens Advice and Law centre has helped over 1,000 people with debt issues, including problems with payday loans.