Payday loans are short term borrowing for those with a quick need for cash. The basic concept is that a loan is given today, and the money is repaid on the next payday. The loans can be for as short a period as one day, but generally are from a week to a month.
Definition of Usury
Payday loans generally carry the highest interest rates allowed by law. A state can set the maximum rate that a loan can incur. If the rate were to be set higher, it would be considered usury, and would be illegal.
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