Online Payday Loans

Names can be deceiving.

Although the website says ‘payday’ loans, that is no guarantee that the due date of the loan will match your payday.

If you don’t check the due date in the loan agreement carefully, the loan could end up costing you much more than you think…

Some payday lenders:

• set the payday loan duration to 14 days (regardless of your payday)
• start counting days the moment you receive the loan

It is your responsibility to check that the due date matches your payday.

If the due date is before your payday, you will:

• not have enough funds in your account to repay the loan
• be unable to repay the loan
• be forced to renew the loan
• likely incur expensive NSF fees

The moment you renew the loan, your fees will double.

Even worse, if the lender tries to cash your check or withdraw the funds from your account, you may be charged additional NSF fees.

If the fee on your loan is $25 for every $100 borrowed and you miss the loan due date:

• the loan fees will double ($50 per $100 borrowed)
• your bank may charge you a $25 NSF fee
• their bank may charge you a $25 NSF fee
• there may be an additional $25 NSF penalty included in the loan agreement (payable to lender)

If your payday is even one day after the due date, you could be paying $125 in fees and penalties on a $100 loan.

While this means financial hardship for you, it means handsome profit for the lender. The lender will have doubled or tripled their profit at your expense!

There is no motivation for unethical lenders to inform you that your payday is after the loan due date because lenders make more money in fees when you cannot repay the loan.

It is up to you to check the loan agreement to ensure that your payday is before the due date.

Payday loans are expensive credit and little mistakes could have big consequences. If possible, consider payday loan alternatives.

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• 04/24/2008: Update: Payday Loan Laws that Hurt Consumers
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