Payday Loans Online | Online Loans Increasing

People that need money can just choose from hundreds of businesses that deliver instant money over the Internet. There are web-based lenders are promising fast aid for financial emergencies. But credit counselors say the Internet operators, a new part of a $25 billion lending marketplace, are bypassing state laws on payday loans and leading thousands of Minnesotans into deeper financial trouble.

Payday loans are small and short-term, aimed at borrowers who need cash between paychecks. Minnesota law limits payday loans to $350 and caps the interest rate at about 200 percent annually, or $23 on a loan of $300. The law also prohibits lenders from rolling over loans. If the borrower doesn't pay back the loan in two weeks, the lender takes the next interest payment straight from the bank account.