PayDaySay is an online loan marketplace that connects people needing quick cash with lenders for payday loans or cash advances, even for bad credit, offering fast approvals but often with high interest rates (APRs) and fees, functioning as a service to find short-term financial help through their website or mobile app. It's essentially a middleman, gathering basic user info and matching them with lenders in their network for quick funding, though transparency and customer trust can be concerns.
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If you don't pay back a payday loan, you face escalating fees, aggressive collection calls, potential lawsuits leading to wage garnishment or bank levies, and damage to your credit score, though you generally won't go to jail for the debt itself but could if you ignore a court order. The lender first tries to withdraw funds, causing overdrafts, then adds late fees and interest, potentially trapping you in a debt cycle, and may sell the debt to a collection agency.
Payday lending is an abusive and deceptive practice that strips wealth from working families. In recent years, many states have put in place tough laws to stop abusive lending, but payday lenders have continued using online lending to prey on consumers.
You know a loan company is likely a scam if they guarantee approval, demand upfront fees (processing, insurance) paid via wire, gift card, or app, pressure you with urgency, have a poor website/no physical address, or won't check your credit/income; legitimate lenders verify your ability to repay, deduct fees from the loan, and operate transparently. Always research lenders with your state's Attorney General and check for proper licensing.
† Paydayuk was a direct lender that went into liquidation in October 2019. The domain name Paydayuk was then sold. Payday UK is a registered trading name of Payday Loans Ltd, an introducer appointed representative of Flux Finding, who are a credit broker, not a lender.
Because Payday loan interest rates are so incredibly high and the loan is so hard to pay off, they create a cycle of debt that is extremely difficult to break. Usually, when a Payday loan comes due and you can't pay the full amount, many lenders will allow you to pay the initial fee only to extend the due date.
Payday loans are typically fast-cash for small amounts that must be repaid in a single payment. If they are not repaid in full by the due date, additional fees are typically charged and the due date is extended. This can lead to a vicious cycle of re-upping over and over again, incurring more fees each time.
Close your accounts.
If all else fails, you can close your bank accounts. This cuts off the source so your payday letter can't continue with automatic withdrawals.
Payday loans are expensive.
Lenders usually charge from $10 to $30 for every $100 borrowed. On a typical two-week payday loan, a fee of $15 per $100 translates to an annual percentage rate (APR) of 391%. The APR tells you how much it costs you to borrow money for one year.
Contact your local consumer credit counseling service for help working out a debt repayment plan with payday lenders. If payday lenders are electronically withdrawing money from your bank account, tell the lender in writing they are no longer authorized to withdraw money from your account.
A $1,000 payday loan typically costs $150 to $300 in fees for a two-week term, translating to an extremely high Annual Percentage Rate (APR) of around 400% to 780%, as lenders charge $15-$30 per $100 borrowed. For instance, a $15 fee on $100 means owing $1,150 on a $1,000 loan in two weeks, with costs escalating significantly if you roll over the loan.
Payday Loans
Many payday lenders charge APRs that exceed 400%, and the repayment window is often only two weeks. If you can't pay the loan off in time, you may have to roll it over, leading to more fees and a debt cycle that's hard to break.
Payday loans are short-term and usually have much larger fees than other loans. You should consider if you can pay it back on time, what other choices you may have, how much will it cost, and how safe your personal information is online.
A $200 payday loan typically costs around $30 to $60 in fees for a two-week term, making the total repayment $230-$260, but costs vary significantly by lender and state, often translating to extremely high Annual Percentage Rates (APRs) of 391% or more. For example, some lenders charge $15 per $100 borrowed (so $30 for $200), while others might charge $25-$50+ in fees, with renewal fees adding even more if you can't repay on time.
As mentioned above, payday loans shouldn't usually affect your credit score, but it really depends on the company's criteria. So just in case, try to avoid getting a payday loan if you've got an important credit application coming up, such as applying for a mortgage.
Legitimate lenders perform credit checks, verify income, and assess your ability to repay. If they skip that process, they're likely betting on your desperation. A lack of physical presence or poor customer service access is a major red flag.
To check for loans in your name, get your free credit reports from AnnualCreditReport.com and look for unfamiliar accounts or hard inquiries; also, monitor bank/card statements for unauthorized transactions and report any findings immediately to IdentityTheft.gov for a recovery plan. Key signs include new accounts, unknown loans, or inquiries you didn't authorize, indicating potential identity theft.