Payday loans is a term used to describe short term, high cost loans that generally are due at the borrower’s next payday. Often the lender requires a repayment by a post dated check for the full amount owed including all fees at the time the loan is made or authorization to electronically debit the funds from the borrower’s bank account when the borrower is paid his or her next wage payment. Some states do not permit payday loans and others highly regulate them.  Recently, the Federal Trade Commission (FTC) settled charges it brought against fraudulent payday lenders who used the names Harvest Moon Financial, Gentle Breeze Online and Green Stream Lending who the FTC alleged had continued to withdraw millions of dollars in payments from their customers’ bank accounts long after their original loans and repayment costs had been paid.  As a part of the settlement any of the defendants’ customers who had paid the original amount of their loan and one finance charge would have the rest of their debt deemed paid in full.


A common version of a payday loan requires you to pay an upfront fee before you receive your loan. Never pay in advance for a loan. Legitimate lenders only charge fees after you have been approved for and received your loan.  Payday loans are an expensive way to borrow money.  If possible, you should consider other sources for loans.

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