Definition of payday lender in US English:

payday lender

noun

  • A company that lends customers small amounts of money at high interest rates, on the agreement that the loan will be repaid when the borrower receives their next paycheck.

    ‘payday lenders have been criticized for setting loan terms that keep cash-strapped borrowers in perpetual debt’
    • ‘For a borrower with bad credit, payday lenders offer an invaluable service few banks will offer.’
    • ‘Payday lenders lend without regard for the borrower's ability to repay the loan.’
    • ‘Payday lenders are teaming up with banks to offer short-term, high-interest loans in states that outlaw them.’
    • ‘Check cashing stores, rent-to-own stores and the payday lenders have their downside: high fees for money order transactions or short-term loans.’
    • ‘Remember, if you stumble into an unauthorised overdraft from a high street bank you may end up paying charges of which a payday lender can only dream.’
    • ‘The payday lenders are assailed for collecting $1.6 billion in fees a year, but Webster says banks charge $7 billion a year for bounced checks.’
    • ‘It will force the most desperate borrowers into the arms of pawn shops and payday lenders to make ends meet.’
    • ‘In short, payday lenders provide a means for the unbanked to join the financial mainstream.’
    • ‘If they can't get a credit card, then they have to turn somewhere else for credit, such as payday lenders, check-cashers, pawn shops, or loan sharks.’
    • ‘The new rules became effective in July, and let payday lenders and car title lenders charge a $10 origination fee per $100 loaned, up to a limit of $30 for a loan of any amount.’
    • ‘Since that time (140 days ago), around 300 payday lenders have exploded across the state.’
    • ‘Greedy check cashers and payday lenders rushed in to fill the void.’
    • ‘Expect business at payday lenders and pawn shops to increase, for instance.’
    • ‘Fifty-four percent of us have no bank account or are still using check cashing places, money orders and payday lenders.’
    • ‘Many check cashers and payday lenders have sought to lease national bank charters to avoid legislative interference and circumvent state usury laws.’
    • ‘The woman tried to close her checking account, which was being automatically debited by payday lenders.’
    • ‘Since the fixed costs associated with setting up a loan are similar, whether a person is borrowing $100 or $100,000, it should be no surprise that payday lenders would charge higher fees or interest rates, since they're dealing with loans of lower amounts.’
    • ‘For instance, payday lenders actually charge fees of about $15 to $20 per $100 borrowed.’
    extortionate moneylender
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