Your accepting a check, giving the writer less than its face amount, and holding it for an agreed upon period of time. The rationale behind the boom in payday loans is perceived high credit card rates and high bank fees for bounced checks. Immediate gratification by the consumer is another driving force in the deferred deposit business. There is nowhere a consumer can go for a small loan in an emergency. Banks don't do it and loan companies are too slow and complicated.
High check bouncing fees drive the business.
Then the original recepient of the check charges a fee. Collections APR formula Compliance issues. Order on-line NOW from our secure, encrypted server.