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Originally Posted by Apollia  Actually, I'd like to clarify that I really don't know if that's the way they get away with that. I really don't know how payday loans work for sure, but someone I know once got I think a $400 loan for something like $60, so, I'm just assuming the payday loan sharks get away with it by calling it a fee rather than interest.
Best wishes,
Apollia |
Sticky issue. The federal Truth in Lending Act makes it difficult to disguise fees, though I'm not sure if they're factored in to usury caps. My gut guess, based on the federalism of the US system, is that each state figures fees differently. I do know that there were overtures a few years back to crack down on interest rate exporting (i.e. having choice of law provisions which put a loan made in a usury cap state governed by the laws of a state with higher caps) but I'm not sure what came of it.