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I am not entirely sure why you would wonder if advertising on the internet would be legitimate or not. The only real regulation that applies to payday loan advertising is to state the APR (annual percentage rate), when making ANY reference to the costs of obtaining a payday loan. Which makes no sense, as the loan is NOT an annual contract, but a (usually very short) short term contract.

For example, one site offers a payday loans for a 15.00 fee per 100.00 borrowed for a 2 week period. Meaning if you need a $100 payday loan, the total cost for the loan would be $115.00 as long as you paid if off when you said you would, your next payday (avg of 2 weeks). However this technically equates to 540% APR, which makes it sound totally crazy, like it is a giant ripoff. About the same as the 39.00 fee Bank of America charged for an overdraft on an account of 2.00.

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Q: Are the instant payday loan companies advertising over the Internet legitimate?
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