Pay day loans are an item regarding the deregulation trend of this 1990s, when numerous states rolled right back legislation that restricted how much a lender could charge for the loan

A customer borrows a small sum, usually less than $500, for a week or so, until their next paycheck in a typical loan. Loan providers assess flat “fees” for these loans, as opposed to typical interest fees. At Advance America, the nation’s biggest payday loan provider, a debtor in Texas will pay $40.91 to borrow $200 for 14 days – …