A payday loan, also known as a paycheck advance, cash advance or payday advance, is a short-term loan for people who need money until they get paid again. Payday loans are available online or in-store and generally are given out in amounts between $100 and $1500. Interest rates for a quick payday loan can run as high as 900% annually, but many states are regulating the cash advance loan industry in hopes of reducing interest payments for consumers. Congress passed a law in 2006 which capped the APR at 36% for lending to people in our military.
Payday lenders flourish
(The Coloradoan) - Payday lenders don't require a credit check, but mandate that borrowers have both a checking account and a source of income.
In general, people with savings in the bank have no need for payday lenders. Instead, the payday loan stores are most often used by borrowers who can't go to a traditional bank.
The poverty level for a single person in 2006 was $9,800; for a single parent with two children, the threshold is $16,600. The "average" payday loan customer earns $28,440 a year.
An analysis by Assistant Attorney General Paul Chessin concluded that despite state regulation of payday lenders, "Colorado payday loan consumers also often find themselves trapped in a cycle of debt. Indeed, it is the repeat customer who accounts for the overwhelming majority of the payday lender's loan volume and revenue, its bread and butter."
"I run out of money toward the end of the month and I have to buy groceries," said the 42-year-old woman, who asked not to be identified because she receives disability payments.
Disability and other government payments are considered a suitable form of income for granting payday loans, under the law. Ron Rockvam, president of Colorado Financial Service Centers Association, the state's payday lending association, said many of his customers are state employees who get paid monthly, including the Division of Wildlife, the Colorado State Patrol, and teachers.
A payday loan is cheaper than the fees for bouncing a check, credit card late fees or a utility reconnection charge, Rockvam said.
Former workers blast Check N' Go
(Cincinnati Post) - WASHINGTON - Former employees of a Cincinnati area payday lender have criticized the company's business practices, saying they were pushed to solicit minority and low-income residents and get them to go deeper into debt through revolving loans. More...
Gov't regulation of the payday loan industry is not the answer. The gov't is all to willing to address high-interest rates and not at all willing to address the higher-than-stated rates of inflation, excessive government spending and wage stagnation which drive folks to payday lenders in the first place.
Cash advance without the 500% interest
(ColumbiaCityPaper) - Sheriff offers $5000 reward for information leading to arrest...
Richland County Sheriff Leon Lott announced today that the Sheriff’s Department will add $5000 to the $1000 reward that crimestoppers of the Midlands is offering for the arrest of those responsible for a series of robberies that began in early July and having occurred in the Dentsville and Broad River Road areas.
Breakdown of the robberies: 07/06/2007 Cash Advance Check Cashing 5301 Forest Dr Columbia SC 29206 07/24/2007 Express Check Advance 2700 Broad River Rd Columbia SC 29210 07/28/2007 Pier One 10136 Two Notch Rd Columbia SC 29223 08/02/2007 Express Check Advance 2207 Decker Blvd Columbia SC 29223 08/04/2007 First Cellular 7363 Two Notch Rd Columbia SC 29223 08/08/2007 Rent A Center 3315 Broad River Rd Columbia SC 29210 08/10/2007 Cash Bucks Check Cashing 10149 Two Notch Rd Columbia SC 29223 08/16/2007 A-1 Check Advance 10171 Two Notch Rd Columbia SC 29223 08/23/2007 First America Check Advance 7386 Two Notch Rd Columbia SC 29223 08/25/2007 Absolute Title Loans 2210 Decker Blvd Columbia SC 29223 08/31/2007 A-1 Check Advance 9330 Two Notch RD Columbia SC 29223
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Payday loans' costs can get steep
(Chron.com) - With bills mounting, mechanic Norman Jacko reluctantly turned to a payday lender for relief.
"If I had a choice, I wouldn't do it," the 50-year-old said, as he signed off on a second loan in as many weeks. "The job right now is just not cutting the mustard. You gotta do what you gotta do." More...
Payday loans fuel Cash America gains
(Star-Telegram) - Revenue growth for payday loans, including those extended over the Internet, helped Fort Worth-based Cash America International rack up a 19 percent increase in net income for the second quarter.
"All aspects of our business experienced increases in revenue, led by our expanded balances of cash-advance loans, which posted the largest portion of the year-over-year gains in revenue," President Dan Feehan said.
But he stressed that Cash America's pawnshop loans and merchandise sales represented about two-thirds of revenue. Pawn revenue was up 18 percent, he said. More...
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