Fees charged for these services are usually substantially higher than typical financial institution fees for customers with accounts. Payday lenders allow a consumer to borrow against the next paycheck, usually by writing a postdated personal check for the amount of the loan plus interest. D.C. Title loans are targeted at people having few other assets and a poor credit history, allowing them to use the title to their car to get access to credit, while continuing to drive the car. The loan is based loosely on the worth of the car and usually is written for a one-month period. High interest rates and easy rollovers, the fees for which are rolled into the loan balance, end up costing consumers several times the cost of the original loan.
Consumers can continue to rent the item, return it, or pay the higher cost to buy it.