This report sent to the Cagey Consumer by an ex-employee in the payday loan industry.I worked for a check-cashing business until recently. Employees are pushed to offer at all costs a deferred account, in other words a loan until next payday. Interest goes as high as 1500% APR. I have served doctors, lawyers, nurses, and all other sectors of the labor force.
When are the banks and real politicians and judges going to stop this scam? If the banks would be a little more liberal about cashing poor black customer checks, maybe that would slow down the rush to the check stores. I think the different utility companies should work out their own collection efforts in place of the check cashing businesses.
I've seen spouses signing for other spouses and getting money, I've seen sex traded for loan experiences. There is more to this scam than meets the eye.