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But are they bounties? Not by a long way. Payday loans are criticized all across the world and are also engaged in various legal battles for profiting through the plight of middle-class gentry. The interest rates are wickedly high. In fact, it is a mockery of banking norms. The rates vary from 15 to 30 percent for a fortnight. When translated to a yearly percentage, this may amount to 180 to 360 percent. For instance, if you avail a loan of 1000 dollars till the date of your next salary, you will have to write a post dated check of 1150 dollars to 1300 dollars depending upon your state of residence. The loans are hence criticized for promoting a debt trap.
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