Who Are the Customers of Payday Advance Loans?
The payday advance loan is a small, short-term loan also known as a cash advance loan or check advance loan that meets the needs of a growing number of the population. Part of the payday advance loan popularity is the fast, simple application process. Its minimum requirements are: • The applicant must be a U.S. resident over 18 years old in most states • The applicant should not have current outstanding payday loans • Have an active checking account • $1,000 minimum monthly verifiable income After submission and approval of the payday advance loan, the borrower reads and signs an agreement containing disclosures required by the Truth in Lending Act and writes a personal check for the amount of the advance, plus a fee. The lender advances the customer funds immediately, but holds the check until the borrower’s payday (hence the name). State laws regulate payday advance loans. Today’s payday advance loan lenders are required to provide agreements written in clear, simple language, and to
