People Ex Rel. Owen v. Miami Nation Enters.

*229 The practice of short-term deferred deposit lending-often called "payday" or "cash advance" lending-generally involves small sums that become due on the borrower's next payday. In return for the loan, the borrower provides the lender with a personal check for the amount of the loan plus fees or with direct access to his or her checking account. The lender then waits a specified amount of time to deposit the borrower's check or debit his or her account-hence the deferred deposit. Because of the short-term nature of these loans and the relatively high fees involved, effective annual percentage…