Caskey, John P. - Federal Reserve Bank of Philadelphia - 2010
Payday lending is controversial. In the states that allow it, payday lenders make cash loans that are typically for … $500 or less that the borrower must repay or renew on his or her next payday. The finance charge for the loan is usually 15 … percent. In this article, the author briefly describes the payday lending business and explains why it presents challenging …