...gives a postdated personal check to the lender in return for cash. In most cases, however, borrowers are unable to fully repay their debt, and they consequently incur repeated bounced check fees. The rolled-over long-term loans have annual percentage rates (APRs) of interest ranging from 391 to 443 percent on average. These exorbitant fees and APRs trap needy consumers in endless cycles of debt. Because borrowers are unable to pay off an initial loan, 91 percent of all loans go to borrowers with at least 5...

NOTE: All illustrations and photos have been removed from this article.



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