The customer writes a postdated check
for the amount of the loan plus a hefty fee.
This sounds like loan-sharking, but predatory payday lending - the practice of issuing small, short-term loans in exchange for a postdated check
and a massive fee - is legal in California and 34 other states.
A good collector will have a high % goal in the beginning of the month because of his "backend," or postdated check
commitments on his PPAs.
You may not also deposit a postdated check
before the date listed on the debtor's check.
These short-term, high-rate loans are also called cash-advance loans, postdated check
loans or deferred-deposit cash loans.
The loan fee was $140, and the Stokers wrote a postdated check
The customer writes them a postdated check
that the check casher won't deposit until there's money to cover it.
According to an October 2014 analysis by the Center for Responsible Lending (CRL), "for a 2week loan of $255 (the max allowed in California) the borrower writes a $300 postdated check
($255 loan plus $45 interest) to the lender.
Aman Futures then issued a receipt acknowledging the investment placement and handed out a postdated check
that could be exchanged for cash on a date corresponding to the time the returns were due.
GSIS will notify qualified housing loan borrowers to retrieve their postdated checks
from the formers treasury unit and replace it not later than 01 August 2017.
The report offers several recommendations, including capping interest rates and fees, allowing installment payment plans, extending loan terms, limiting the number of rollovers and prohibiting the use of borrowers' postdated checks
Customers typically borrow from $100 to $500 in return for writing postdated checks