Fortress — the payday loan industry has been in a lot of trouble because it is a predatory rip-off of vulnerable people. The fees associated with a payday loan are typically the equivalent of hundreds of percent APR; and if someone can`t pay on time, and the fees continue week by week, the APR can rack up to thousands of percent of the original loan in just a couple months. Often people cannot break out of the payday-loan debt cycle because the fees keep racking up and up and up — and profitability for payday lending is dependent upon these people. It is, quite literally, legalized loan sharking... about the only difference is that rolling over a payday loan won`t result in Vinny coming to cut your finger off. (Payday lenders can, however, cut your credit off by ruining your credit score. Which is worse?) I have read, but can`t verify, that the interest rates payday loan places charge are significantly higher than what actual street thug loan sharks typically charge. Payday lending was banned in Georgia a couple years ago. (I don`t know if it still is banned there.)
years and years ago I went to a payday lender when I had started a new job and was in that first-paycheck-takes-a-month period. I forget what they wanted to charge me, but in addition to the fee they wanted me to leave my car title with them. It was clear the place was not there to help — it was there to rip me off.
I`m sure if you google around you`ll find a lot more information. Wikipedia`s "payday loan
" page appears to have consolidated a fair amount of information about it.