This article in the NYT outlines some incredible situations with payroll lending operations, that can only be described as absolutely usurious – otherwise known as loan sharking.  This is the absolute antithesis of responsible lending. 

But what is frightengly, almost funny, because its so unbelievable, is the pride expressed in the regulation that restricts fees to a mere annual percentage rate of 442% per annum.  Please note there is no error there … no missed decimal point. 

Thank god the legislators  in Florida, Illinois, and Minnesota are taking care of things.

He said the association supported fair regulations, including a cap on two-week fees in the range of $15 to $17 per $100, a level now mandated in several states, including Florida, Illinois and Minnesota. This translates into effective fees of about a dollar a day for those who repay on time, which he said was reasonable given the risks and costs of business.

Source: Seductively Easy, Payday Loans Often Snowball – New York Times