At some point APRs really stop making sense for two-week loans. It's easier to understand what people pay in three parts: processing costs, a risk premium, and the lender's margin. Fordham Journal of Corporate & Financial Law estimated the margin at 3.75%.
The argument against payday lenders is a paternalistic one with moralistic overtones, with all the potential flaws that might entail.
The process is pretty demeaning and profits are higher then you think.
The lenders dilute the profits by opening stores all over the place. It's a competitive industry. APR is the accepted measure for loans, why should they break the standard and get special treatment?
The argument against payday lenders is a paternalistic one with moralistic overtones, with all the potential flaws that might entail.