Mike
Radford,#2Consumer Comment
Thu, December 15, 2005
Payday loans are almost always for a two week period with a single payment at the end. They are either paid in full then (principal + finance charge) or the borrower can "renew" the loan by paying only the finance charge and starting a new loan for the principal. The company makes a lot more money renewing the loan than having it paid off. Many of the companies make it difficult to pay in full by requiring advance notice and/or a different payment method, both of which should be illegal. Also none of the companies is going to upfront tell the borrower of their right to pay in full at any time. Many states make it illegal to renew a loan more than 2 or 3 times, or don't allow renewals at all. Internet companies set up in a state with permissive laws and claim that the laws in the borrower's state don't apply to them.
D
Naples,#3Consumer Comment
Wed, December 14, 2005
Are you saying that you had a 3 month loan and you WERE NOT ALLOWED to pay off the loan any faster or could you had paid the loan off at anytime? Please respond.