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 ?
Too many working New Mexicans struggling to make ends meet can fall prey to predatory payday lending practices that trap them in a cycle of debt, said Senator Udall.
Warren and other Democrats linked Mulvaney's decision to drop cases and revisit payday lending rules to his having received campaign contributions from the payday industry.
gov/about-us/newsroom/cfpb-statement-payday-rule/) announced it would reconsider rules governing payday lending it finalized in October under Cordray.
29) Nathalie Martin and Robert Mayer's What Communities Can Do To Reign In Payday Lending: Strategies for Successful Local Ordinance Campaigns Through a Texas Lens traces how communities have rallied to convince their local governments to pass payday lending regulations and suggests strategies communities can use to press for meaningful local ordinances going forward.
Congress effectively banned payday lending to active members of the military in 2007.
18) This Part discusses how payday loans operate and outlines some of the major consequences to borrowers, including the debt cycle borrowers often fall into, aggressive debt collection practices, and attempted regulation of payday lending at the state level.
Since then, the number of payday lending shops has fallen from 1,400 to under 500.
He said agencies working with families had found issues with payday lending were "very much alive", despite the perception that bad practice in the industry had been "fixed".
First, we find that the revenues of payday lending firms grew steadily from 2006 through 2013 but that there was no break in trend during the financial crisis.
Bennett Sandlin, executive director of the Texas Municipal League, which has encouraged cities seeking restrictions on payday lending to pass a so-called "unified ordinance" to avoid a patchwork of different regulations, said cities have been forced to step in because of inaction at the state level.
The law also created the Consumer Financial Protection Bureau (CFPB)--the first-ever federal agency aimed at regulating consumer financial products--and gave it expansive supervisory authority over not just banks but also non-bank financial institutions like mortgage brokers and payday lending outfits that had previously escaped serious scrutiny.
Trade body the Consumer Finance Association (CFA) has said that borrowers are at risk of falling into the hands of illegal lenders due to "severe restrictions" on payday lending, the BBC reported on Tuesday.