Payday Loans 101
Hi, I’m Jason Amerine with Castle Law Office.
Payday loans offer borrowers a small amount of cash upfront to be repaid when your next
paycheck comes in. Payday loans are short term loans that can rack up a huge burden
on the borrower. Often times the quick fix loan doesn’t get paid by the due date.
Here’s what you need to know about payday loans.
I want to talk to you about a scenario we see often.
A client comes in because their car broke down. They didn’t have enough money in their
checking account and their credit card was maxed out. This person went
to a Payday loan company. Keep in mind that payday loans come with a fee. This fee could
be seventy five dollars for the loan. So if you borrow four hundred dollars you will owe
the four hundred dollars plus seventy five dollars for the interest or fee. The borrower
told the payday loan company that they couldn’t pay the amount due until a certain date. The
payday loan company said that was fine and agreed to hold the check until the borrowers
payday to cash it. The only problem is the borrower didn’t have the money by the time
it was due. The payday loan company extended the loan and charged another fee of seventy
five dollars. This happened time and time again. Now the Four Hundred Dollar loan is
now Twelve Hundred Dollars due interest to extend the due date from the original Four
Hundred Dollars. You may only need an attorney once in your
life, but if you do, we are here, right here to fight for you. Call Castle Law now at 8
1 6-8 4 2-6 2 0 0 to schedule a free consultation. Or visit us online at castlelawkc.com
to chat with an attorney. You’ll be glad you did.