I see these type businesses all over town, and people are always
walking in and out. I assume it caters to low income people,
but why don't people just go to a regular bank?
2006-07-27 18:39:01 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Those places are a trap. The service they provide is a very small loan (no more than $260 max) based on your paydates. You write them a check from your checking account for the amount you are borrowing plus their fee. If you want the max of $260 you write a check to them for $300. That's the repayment plus their fee. You have to go back to them on your next paydate and pay them back in cash and they give you your check back. Some people just need a little extra help in between for an emergency that comes up and banks won't loan small amounts of cash. They are a waste of money and often become a trap where you pay them back on your paydate and then have to reborrow to because you are short again. viscious circle.
2006-07-27 18:47:54 · answer #1 · answered by Ginger 3 · 3⤊ 1⤋
They offer payday advance loans Wells Fargo offers it to but there the only bank I know that does this besides the check into cash.
2006-07-28 01:42:43 · answer #2 · answered by butterflybaps 3 · 0⤊ 0⤋
A bone in the wazoo!
2006-07-28 03:14:32 · answer #3 · answered by Mr. C 3 · 0⤊ 0⤋