They prey on the uneducated who are in an emergency mostly. I've seen a lot of people who funded gambling habits with them too.

Once folks get one, they are stuck. You'd literally have to go without an income for a week and a half to get out of the cycle. It is a sad situation.

How often do you see one of these shops in the more affluent neighborhoods ?

They obviously pray on people whom are already in a bad way.

If they were truly scrupulous lenders they would offer debt counseling as a prerequisite to loans which are greater than say 50.00$.

look for balance transfer offers, hit up family, etc. before hitting up the legal loan sharks.

Now I've got a few credit cards I don't max like a I use to and just use those instead.

They are supposed to be for small amounts of money that you are just "short for" Like if you wrote out all of your bills, decided on a dinner out, then had an unexpected bill, like a flat tire or a doctors bill.

Instead it seems that people are using them as free cash or to stave off a bankruptcy.

I have been in situations where I'm looking at $200 on Friday and I need a $25 co-pay today.

The problem is spending money they do not really have or actually expect to have. People used to just do this with check kiting.

I can see the regulations that require a through education for the consumer as part of a solution.

Payday loans are synonymous with loan sharking ...

But, gotta keep reminding the world that they are crap.

@doctor_cos: I would think the fine folks at the Money Store have examined the laws of the land and feel pretty confident that they are technically NOT breaking the law. I don't see it as enforcing current law but plugging up loopholes that allow them to get away with this behavior. Perhaps a gross reciepts tax on them for 95% or so?

Payday Advances, the legal way to steal your cash!!