Short-term loans are a lifeline for US citizens in financial hardship, with payday lenders often offering more attractive options than typical lenders: quicker access to funds, more opportunity for those with limited credit history, and repayment flexibility.
But a lack of regulation means the payday loan industry can be predatory, warns Yasmin Farahi, deputy director of state policy and senior policy counsel at the Center for Responsible Lending (CRL). Quick loans are accompanied by a hefty price tag and high risk.
