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To apply for a payday loan, a borrower needs to provide personal identification, paycheck stub, and bank statement. The borrower gives a postdated check to the lender for the amount of the loan plus the lender's fee. The lender holds the check until the borrower's next payday. At that time, the borrower has the option of (1) 

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Mar 4, 2004 Summary. Payday lending - among the highest risk subsets of subprime lending - is characterized by small-dollar, short-term, unsecured lending to borrowers typically experiencing cash flow difficulties. Some insured depository institutions have failed to properly assess and control the risks associated with