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 ?
Most No Fax Payday Loan solutions will concur to time period online payday loans of fourteen, twenty-one, or twenty-eight times.
Title loanssecured by a borrowers auto titleoperate similarly to payday loans. Within 30 days borrowers must repay the principal plus fees.
Elsewhere in Powys, Llandrindod Wells residents paid PS263,000 in fees and interest on 1,740 payday loans.
"It's no surprise that areas with high deprivation and low incomes are the most affected by payday loans."
Marion Fellows, SNP MP for Motherwell and Wishaw, said: "The roll-out of Universal Credit, which cuts incomes, rigged disability assessments, a minimum wage below the real living wage, precarious work through zero-hours contracts, and the two-child tax credit cap are all policies which are forcing people to turn to payday loans."
'PayDay Loan is service quick, convenient and does not require any paperwork, collateral or guarantor,'' Diamond Bank said in a statement signed by its Media Relations Officer, Mr Ezechinyere Anyanwu, in Lagos.
In early October, the CFPB passed new payday loan rules they hope will combat the abuses in the industry.
The difference is that gambling addicts are a very small percent of casino patrons, whereas payday loan addicts are a substantial percent of payday borrowers.
(40) Payday loan borrowers typically have incomes in the range of $25,000-$30,000, poor credit histories, and have often repeatedly sought credit in the months leading up to the decision to take out a payday loan.
A survey of 500 of its clients who had taken out payday loans after the regulations found more than a quarter (26%) did not think their lender took reasonable steps to check they were able to afford to repay.
Payday loans are decried a scourge, a menace and our dubbed "loan sharks" in the US and UK.