The law requires payday loan costs to be expressed in yearly terms, even though they only have average lifetimes of two weeks. This yearly cost is referred to as a payday loan’s annual percentage rate, or APR. By forcing lenders to price payday loans based on their APR, consumers looking to borrow a payday loan often have trouble accurately understanding how much interest they will really pay after a normal 14-day term. If everything were priced like payday loans, everyone would have difficulty finding out the true cost of anything.
Payday Loans Infographics
Jul, 25, 2013
Apr, 16, 2013
Payday loans are a highly contested form of consumer lending. Advocate groups fight to protect them while consumer groups work to limit or eliminate them completely. Currently, 12 states have laws that either ban payday loans or have strict lending laws which make them unprofitable in the state. In order to simplify the information, Loans.org compiled a United States map to show the geographical regions with the most regulation. In addition, this infographic provides some history into several states’ legislation and delivers some fun facts about the industry.