You have probably seen them as you drive past strip malls; storefronts with names like "Fast Cash," "Cash Express," or "QuikCash." Or maybe you have seen their ads pop up while roaming the Internet. With promises of "no hassles" and "fast cash," payday loan companies can seem like the answer when you're in between paychecks and you need money quickly.
The payday loan company industry didn't exist 10 years ago and today there are more than 12,000 of these companies. In fact, according to a study by the National Endowment for Financial Education, in California there are more payday loan company stores than Burger Kings or McDonalds restaurants!
This booming industry is part of the "fringe banking" movement of companies that provide financial services to communities underserved by banks and other traditional financial institutions. Let's take a look at payday loan companies and what it will cost to you to use their services in the long run.
