That’s just a big old demonstrably false lie!
It’s pretty stupid to “cash” a legitimate paycheck at a payday lender.
Straight up 6% instant service charge.
Floating a 14-21 day paycheck advance is a straight up 10% plus $1.00.
That whole 197% “average” canard is false.
Odd thing, one never gets any credit points for paying off such loans on time or early...
If you want to borrow $300 from a payday lender, you pay a fee, usually $20 per $100 that you borrow. So you write a check to the payday lender for $360.
At the end of the two weeks, if you're like most people, you have to roll the loan over and pay another $60. Again, as I posted earlier, a very narrow segment of such customers. The $120 you pay to borrow $300 for one month translates into a 520% annual percentage rate (APR).
The annual percentage rate is calculated on the cost of rolling the loan over every two weeks, for a year.
Here are the rates advertised by one such place.