Payday Loan

A payday loan is a type of predatory lending in the form of short-term, high-interest loans that typically range from $50 - $500. These loans are marketed to people in lower income brackets who are unable to obtain loans from mainstream lenders such as banks and credit unions. Payday loans can lead to a ruinous debt cycle and can carry annual interest rates of up to 390%. Many states – most recently Arizona and Ohio – have taken legislative action against payday lenders and lending stores.