Slick Payday Lender Videos: CRL Responses


The Real Deal of Payday Loans

Payday lenders are producing videos designed to make their high-cost loans seem helpful. What they never say is that the vast majority of the loans they make go to borrowers who can't meet the short-term due date for their loan and must borrow again and again, paying about $50 every two weeks for a $300 loan.

In this video, national payday lending chain Check N Go asserts that payday loans are better than overdraft fees. Not so fast. Both are financially harmful and payday lending can lead to more overdraft fees.

 

Here is what they say... 

 

And here is the real deal

 
 


In this video, Check N Go compares other products to payday loans in an attempt to make 390% annual interest sound reasonable. They don't say that payday borrowers are typically caught in these high-cost loans for much longer than they ever planned.  Payday loans are designed to be long-term debt and while many borrowers do default, it is only after paying hundreds of dollars in interest for an average $300 loan. 

 

Here is what they say... 

 

And here is the real deal