Bank do not approve loans immediately, certainly never in 15 minutes. The appeal of a payday loan is the speed in which the money is available for use. To a consumer facing a electric shut off, or a unexpected car repair bill, the speed is important. Consumers with pressing financial needs cannot wait for a bank to approve a loan, which is not guaranteed., while their electric is being shut off. For people with immediate needs, a pay day loan is exactly what is needed.

Companies providing these loans, short term loans that can be approved in less than one day, are filling a need that traditional banks have ignored. In my opinion, any company that would provide this service should not be looked down upon, but praised for providing a helpful service that banks will not provide.

After all, why would a bank provide loans similar in nature to a payday loan when they can offer loans, such as for a new auto, that span 10 years or more. That is 10 years of collecting interest, instead of the 2 weeks or a month that a pay day loan earns interest if a consumer simply wants to get their old car repaired. Which loan do you think encourages more debt and non-essential spending?