Changes

A '''payday loan''' (also called a '''payday advance''') is a small, short-term unsecured loan, which is many cases is scheduled to be repaid on the borrower's next payday.<ref>http://www.guardian.co.uk/money/2012/jul/12/ge-money-refuses-mortages-payday-loans?newsfeed=true</ref><ref>Michelle Hodson ,''[[Federal Deposit Insurance Corporation|fdic.gov]]'', 18 November 2009, [http://www.fdic.gov/bank/analytical/fyi/2003/012903fyi.html How Payday Loans Work]</ref><ref>http://books.google.com/books?id=_8sDAAAAMBAJ&pg=PA43&lpg=PA43</ref> Sometimes, the loans are also called "[[cash advance]]s", although that term can also refer to cash provided against a prearranged line of credit such as a [[credit card]]. Payday loans are granted after the borrower shows previous payroll and employment records. Legislation regarding payday loans varies widely between different countries and, within the United States, between different states.

A '''payday loan''' (also called a '''payday advance''') is a small, short-term unsecured loan, which is many cases is scheduled to be repaid on the borrower's next payday.<ref>http://www.guardian.co.uk/money/2012/jul/12/ge-money-refuses-mortages-payday-loans?newsfeed=true</ref><ref>Michelle Hodson ,''[[Federal Deposit Insurance Corporation|fdic.gov]]'', 18 November 2009, [http://www.fdic.gov/bank/analytical/fyi/2003/012903fyi.html How Payday Loans Work]</ref><ref>http://books.google.com/books?id=_8sDAAAAMBAJ&pg=PA43&lpg=PA43</ref> Sometimes, the loans are also called "[[cash advance]]s", although that term can also refer to cash provided against a prearranged line of credit such as a [[credit card]]. Payday loans are granted after the borrower shows previous payroll and employment records. The legislation regulating payday loans varies widely between different countries and, within the United States, between different states.

Because the loan is not secured by collateral, and the borrowers are typically despirate, the interest rates charged are much higher than other forms of loans.

Because the loan is not secured by collateral, and the borrowers are typically despirate, the interest rates charged are much higher than other forms of loans.

In the [[United States]], payday lending is legal and regulated in 37 states. In 13 states it is either illegal or not feasible, given state law.<ref name="georgia">{{cite web|url=http://www.pliwatch.org/news_article_070318C.html|title=Payday lenders hope to return in Georgia, 3/18/07|accessdate=2010-10-03}}</ref> When not explicitly banned, laws that prohibit payday lending are usually in the form of [[usury]] limits: hard interest rate caps calculated strictly by [[annual percentage rate]] (APR). Since Oct. 1, 2007 a federal law has capped lending to military personnel at a maximum of 36% APR as defined by the [[Secretary of Defense]].<ref>{{cite web|url=http://www.bankersonline.com/regs/jwnda/jwnda.html |title=The John Warner National Defense Authorization Act - Talent Amendment |publisher=Bankersonline.com |date=2007-10-01 |accessdate=2012-02-22}}</ref>

In the [[United States]], payday lending is legal and regulated in 37 states. In 13 other states, payday loans are either illegal or not feasible, given state law.<ref name="georgia">{{cite web|url=http://www.pliwatch.org/news_article_070318C.html|title=Payday lenders hope to return in Georgia, 3/18/07|accessdate=November 15, 2012}}</ref> When not explicitly banned, laws that prohibit payday lending are usually in the form of [[usury]] limits: hard interest rate caps calculated strictly by [[annual percentage rate]] (APR). Since Oct. 1, 2007 a federal law has capped lending to military personnel at a maximum of 36% APR as defined by the [[Secretary of Defense]].<ref>{{cite web|url=http://www.bankersonline.com/regs/jwnda/jwnda.html |title=The John Warner National Defense Authorization Act - Talent Amendment |publisher=Bankersonline.com |date=October 1, 2007|accessdate=November 15, 2012}}</ref>

==References==

==References==

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[[Category:Finance]]

[[Category:Finance]]