Use payday loan services? This tip might save you $20


It's not an honor I'm proud of, but I'm pretty sure that out of the many writers who contribute to WalletPop, payday loans is my beat.

At least, I wrote about them quite a bit a year ago during a period in which I found myself short of cash and, yes, frequenting payday loan stores. (If you're curious, you can find some of my posts here and here. Oh, and here.)

Anyway, a relative of mine (honest, it's not me) recently told me about a loophole he found that saved him $20 at a payday loan outlet, and I immediately thought, "Boy, this could make an interesting story for WalletPop."

I don't know how it works in payday loan stores everywhere across the country, but last November, in Ohio, the public voted to rein in payday lending to cap the annual interest rate on these short-term loans. So the aforementioned relative of mine took out a loan for $400 and was going to be charged $460. That said, due to changes in the law, he was being charged $40 for the loan.

The extra $20 was to change his $440 money order into cash.