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Payday loans are very popular among the masses as they can get short amount of money for small period to fulfill their small needs. However, like every type loan payday loan system has some defects and it has been considered negatively by many people.

As the payday loan has to be pad back with very high interest rate. Opposition of payday loan is of the view that payday loan lenders take advantage of the poor and distressed people. They charge such a high interest rate that poor people cannot pay back in the time.

So, the borrowers fall in long term never ending debt. On the other hand the people who stand with the payday loan say that it is the only hope left for the poor people who themselves let to be used by the lenders.

The repaying system of payday loans is also very harsh. In most of the cases borrower writes a check to the lender comprising of the total payback amount. If the borrower fails to repay, the lender cases that check, thus, increasing the money owed.

It has been noted that expenses incurred in processing of payday loans is less than other loans but still it has a very high interest rates. This is nothing but to get illegally big profit.

The lawyers are of the view that cash advances loans are not available in banks. Because of this reason there are many private payday loan lenders. Every lender has own interest rates. So it is illegal in terms of law.