Payday Loans (Also known as Fast Loans, Online Loans and Fast Loans)
What Happens If A Payday Loan Is To Be Repaid By Check
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If a Payday loan is to be repaid by check, the usual procedure is as follows:
You, the borrower, give the lender a check payable to the lender. In exchange, you receive cash minus a fee. For example, you give the lender a check for $200 and receive $170 in cash.
Both parties understand that you do not have sufficient money in your account to cover the check when you write it. The lender agrees to hold the check until your next pay day, or another date in the next few weeks.
On the agreed date, one of several alternatives happens.
- The lender deposits the check.
- You, the borrower, gives the lender cash for the check and get the check back.
- The loan is rolled over (extended) for an additional fee - which, again, is a high fee.
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