A payday loan try a small mortgage, borrowed in the a top interest rate, less than an agreement that it will be repaid once a preliminary period of time, always in the event the customers was next repaid.
Cash advance originated in the united states as early as the newest 1900s, whenever loan providers ordered good borrower’s upcoming salary to possess a cost quicker compared to paycheck. The industry boomed in the 1990’s and pay day loan credit model might have been used worldwide.
In the uk, payday loan loan providers are regulated by the Monetary Run Expert (FCA) and should conform to the principles you to definitely control them.