Please provide a link to any payday lender requiring that $900 be repaid for a $400 loan for a month.
In California, a $300 loan (net $255) for a month (if you’re paid monthly) or 2 weeks (if you’re paid biweekly) costs you $45 in interest. That’s steep but it’s the maximum set by state law and is nowhere near your ridiculous claim.
“Please provide a link to any payday lender requiring that $900 be repaid for a $400 loan for a month.”
Just a quick random grab for Texas (where I live):
http://www.speedycash.com/assets/pdf/tx/payday_$500_example.pdf
One month repay for $500 is $783.84 IF you get the 10% APR example plus fees.
Since I have never taken one of these loans, I am unsure if this is a cap. I know someone in another state who took one and gave me numbers like the $400/$900 though.
Regardless, it appears Texas allows more than 2.5 times the APR as California in your example.