Fees for payday loans are typically a percentage of the face value of the check or a fee per 0 loaned.Under the federal Truth in Lending Act, the cost of loans must be disclosed as both a finance charge (in this case the fee) and as an annual percentage rate (APR), the standard cost of credit to the borrower on an annual basis.
This excludes misuse and mistreatment – so try not to use your Virgin TV box as a coaster.
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These loans sanction the writing of bad checks and entice consumers into relying on very expensive debt to live beyond their means.