Payday lenders do not assess ability to repay, relying instead on a postdated check
or on similar access to a borrower's bank account as their assurance that the loan will be repaid.
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.
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.
Payday borrowers, using a signed a postdated check
as collateral, often end up paying more than $800 to borrow $340.
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.
Payday lenders make borrowers sign a postdated check
for, say, $300 to borrow $255 for two weeks.