The Roots of Payday Lending: A Historical Perspective

This chapter explores the historical development of the payday loan industry, tracing its origins to the late 1800s and the shift from daily wages to delayed payment cycles. It highlights how this financial instability led to the rise of predatory lending practices, illustrating the psychological manipulation employed by lenders and the systemic issues forcing workers into debt. The discussion draws comparisons between legal and illegal lending methods, emphasizing the need for reform in worker compensation to address these deep-rooted issues.