Payday Loans - What's Going on With Them?

The APR, the annual interest rate paid for a two week $300 cash loan can reach over 600% on an annualized basis in Texas. The average payday loan borrower stays indebted for five months paying $520 in fees to borrow $375. City Bank doesn't want to be called out for making 500% annual fees off the poor. There's not a lot of competitive pricing issues driving down prices because people are desperate.