Short-term borrowing expense mounts when used repeatedly, but industry says it's necessary

By Dennis J. Willard, Akron Beacon Journal Columbus Bureau

COLUMBUS - Gail Meyers was newly divorced with a 6-year-old daughter, a full- and a part-time job and a payday loan she couldn't get out from under.

Every other Friday she would go to a payday lender in Columbus and hand over $345 in cash. The lender would then rip up a check from Meyers for a like amount that she wrote two weeks earlier.

The next day, Meyers would go back to the lender, write another check for $345 and get $300 in cash back -- enough to keep her going for the next two weeks until she could repeat the process again.

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