Actually these guys are worse, at least regular loan sharks apply some of the vig to the principal. These payday loan guys will keep charging you the roll over fee forever, not one cent ever reduces the loan. It’s a sad industry that’s less honest than mobsters.
You imply “dishonesty”, ie, deception, in not applying any of the roll over fee to the principal.
This deception would have to be blatant in the lending documents, as in stating “some portion of the fee will be applied to principal”. I’d bet you anything it says exactly the opposite, or else there’d be a lot of lawsuits going on.
Are the lenders being “dishonest” when the customers refuse to read the agreement?