Pay Day Loans: Know Your Rights
What exactly is a “cash advance?”
A pay day loan is a short-term, high-cost deal where a client borrows money for something charge. The client writes a check that is personal the lender for the quantity lent in addition to the solution cost. The lending company provides the consumer the loaned quantity and holds the customer’s check (usually until the customer’s next payday) before presenting the check to the customer’s bank for re payment. You might see these advertised as an online payday loan, advance loan, or always check advance loan.
Michigan legislation calls this kind of loan a “deferred presentment solution transaction,” because the customer’s check is held for a period (deferred) prior to it being cashed (presented for re re payment). Continue Reading →