Pay Day Loans: Know Your Rights
What exactly is a “cash advance?”
A loan that is payday a short-term, high-cost deal where a client borrows cash for a site charge. The consumer writes a individual check to the financial institution when it comes to quantity lent in addition to the service charge. The financial institution provides consumer the loaned quantity and holds the customer’s check (usually through to the customer’s payday that is next before presenting the check into the customer’s bank for re payment. You may see these advertised as an online payday loan, cash loan, or always check advance loan.
Michigan legislation calls this kind of loan a presentment that is“deferred transaction,” because the customer’s check is held for some time (deferred) prior to it being cashed (presented for re re re payment).