In the wake of the 2008 financial crisis, lenders and consumers alike have had many concerns regarding the state of the credit market. Traditional banks have tightened restrictions on lending, making it more difficult to obtain credit, especially when the need arises very suddenly and unexpectedly.

For consumers who don’t meet banks’ lending criteria, options are limited, especially when the necessary funds are too “small” for the bank, and when borrowers don’t have proper credit ratings and can’t obtain credit cards. One option for these individuals is payday lending, especially after being rejected by a traditional bank. Contrary to popular opinion, the individuals seeking such lending are not undereducated or unemployed; rather, they are normal individuals who needed a short-term loan to tie them over after an unexpected expense. Often, these individuals are renters, and thus aren’t able to use home equity to help them cover their needs.