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The actuality is always that many of these borrowers cannot repay on time and in addition they are forced to pay the eye and take out another loan to pay for the principle. Plus they pay dearly for this. Currently the average borrower in South Carolina takes 10-15 loans to payoff their original loan amount.

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Most states have usury laws which limit an annual rate to 30% or under of all loans. Currently Pay Day stores slip by by proclaiming that loans are repaid in 2 weeks so no violation has occurred and they are providing a much needed service to people that have no where else to go.

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Pay period lending companies have high dollar lawyers and therefore are probably lobbying a state politicians right now to protect their interests. If enough people complain the states will all have to do something concerning this predatory form of lending.

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