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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Credit loans and payday lenders differ in other ways that seem subtler but may matter just as much to consumers.
One active debate in that controversy is about whether prevailing rates/fees charged by payday lenders are "too high." (1) Payday lenders argue that rates/fees for payday loans do not yield economic profit once one accounts for the full economic costs of being in the business.
Payday lenders are about to come under the microscope.
While some 14 other states have banned payday lenders (also called "short-term lenders" or "deposit lenders"), the industry has found fertile soil in Utah with more than 500 payday lenders.
Earlier this year, the justices ruled that the surety bonds that the Check Cashers Act required the payday lenders to post were available to pay court-ordered damages to victims.
"My office will continue to take aggressive action to stop payday lenders from victimizing New York consumers."
In the absence of payday lenders, some borrowers would be forced to deal with illegal lenders that provide no consumer protection.
One hundred years ago, the leading critic of "salary loan lending" called such people "sharks, leeches and remorseless extortioners." Today's consumer advocates call payday lenders "predatory" and "legal loan sharks."
BANKING AND CREDIT NEWS-September 11, 2018--US Bank launches product to compete with payday lenders
M2 EQUITYBITES-September 11, 2018--US Bank launches product to compete with payday lenders
Global Banking News-September 11, 2018--US Bank launches product to compete with payday lenders