The report offers several recommendations, including capping interest rates and fees, allowing installment payment plans, extending loan terms, limiting the number of rollovers and prohibiting the use of borrowers' postdated checks
The teacher holds a parent meeting at the beginning of the year and collects postdated checks
from each family.
We also ask arrears clients for a series of postdated checks
(for any amounts) for as much as a year in advance, so the past-due balances can be settled gradually.
Payday lenders do this by obtaining postdated checks.
Industry sources openly acknowledge that the postdated checks are used as a means of coercing borrowers who cannot pay all of their debts to pay the payday lender first -- or, at least, to pay the interest for two weeks and "roll over" the loan.
The postdated checks are not in fact used as a mechanism for obtaining repayment of the loans.
Postdated checks are central to the operations of "payday lenders.
Edelman stated that, "The only reason payday lenders obtain postdated checks is to threaten use of the bad check statutes for failure to repay the loans.
Apart from the excessive rates, the principal abuses of payday lending stem from (i) renewals, (ii) use of postdated checks
to coerce payment, and (iii) misleading advertising.