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The Leadership Conference on Civil and Human Rights

The Nation's Premier Civil and Human Rights Coalition

The Leadership Conference on Civil and Human Rights  & The Leadership Conference Education Fund
The Nation's Premier Civil and Human Rights Coalition

Payday Lending

A payday loan is a small, short-term loan that a borrower intends to repay on his or her next payday. This type of loan may also be called a cash advance or a payday advance loan.

Low-income people often turn to this type of loan if they need money quickly for unplanned expenses such as car repairs, prescriptions, or higher-than-usual utility bills. It's fairly easy to get a short-term loan, but you may end up paying fees and interest that add up to an annual percentage rate of more than 400 percent. In contrast, the average rate for credit cards in the United States is less than 15 percent.

Payday lending is currently legal in 37 states.

Information for Consumers

Facts on Payday Loans

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