Payday loans are boon for the people who have regular income. They can avail it during the festive season to throw a party or purchase gifts for their dear ones. But it can be bane for the people belonging to the weaker section of the society. Everyone wants to enjoy whether he is rich or poor. But since payday loans normally reap high APR, the poor are unable to pay back the loan on time. Therefore they entangle themselves in infinite loop of debts.

The latest news reveals that there are around 20,000 loan stores and numerous online payday loan instant approval services in US. According to an industry analyst, payday loan lenders made more than $40 billion that reaped $7.4 billion revenue in the year 2010.

As per the Dodd-Frank law, there are several new norms for credit card. No such rules are implemented for rapacious payday loan lending practices. Therefore payday loans are forbidden in 17 states including Georgia. Tennessee has also put restriction on the number of loans an individual can avail at a time according to credit report. It has also laid restriction on the interest rate per loan. The reports reveal that 30 out of these payday loan lenders are owned by Indian tribes who exempt the state laws regulating the industry. Payday loans have even minted APR of 459 percent.