Gilmore, an Ohio social worker, said he dropped behind on his bills after struggling along with his own medical dilemmas. Seeking cash that is quick he obtained several $500 loans from exactly what are referred to as payday lenders — companies which make tiny, short-term loans with charges and rates of interest that, calculated on a yearly foundation, far surpass prices charged by old-fashioned banking institutions.

Payday lenders say they are usually the choice that is only cash-strapped people with battered credit.