There are no restrictions on the interest rates payday loan companies can charge, although they are required by law to state the effective annual percentage rate (APR). In the early 2010s there was much criticism in Parliament of payday lenders. read more
There are more payday lenders in the U.S. than McDonald's or Starbucks, reflecting economic conditions in which fast money is even more important than fast food. Payday lending, in which users pay a fee for what amounts to an advance on their paychecks, has blossomed over the past 20 years. read more
cause the payday loan is tied to the borrower’s payday, the lender can be reasonably sure the check will clear. Most borrowers will simply run out of money to cover their expenses before the end of the month, often taking out more payday loans (and paying more fees) to pay for the expenses. read more