A fast cash advance with no credit check sounds like a good solution to a surprise car repair or a large phone bill, but not when paired with large fees and interest rates of 300%-1000%.
This is payday lending, and in the current economy these businesses are making millions annually from people already struggling to make ends meet. Today, it is estimated that there are 12 million Americans in debt each year from loans, the majority to the payday lending industry.
The Federal Truth in Lending Act, written in 1968, requires these lenders to disclose the cost of their loans, including the fee and interest. However, even with this information, the total costs of these loans may not seem as extreme as they really are.