Rhode Island opened the door to payday lending in 2001 and is one of about 35 states that allow the industry in some form. The loans are limited to $500 and the money is supposed to be paid back within 13 days. But under state law, lenders can charge up to $10 in fees for every $100 borrowed, which translates to roughly 260-percent interest on a two-week loan, the standard in most states, or about 280 percent on the 13-day term that is standard in Rhode Island.

For a thorough discussion of the payday loan industry and access to our payday loan training materials, we recommend you proceed to Payday Loan Industry