The payday loan industry is huge, millions of dollars are loaned out each day to people in need. But along with the cash loans comes large interest fees. Many outsiders and public officials have condemned payday loans and see it an an industry that takes advantage of its customers.

There are various laws across the United States that prohibit payday loans from being administered. For example, states such as Georgia, Ohio, Virginia and West Virginia put limitations on payday advance companies, so they tend to not advertise in those states.

There is also a great debate going on if payday loans are ethical or not. On one hand, they can help get people out of a jam. If their car breaks down or they have a medical emergency, they can get a cash loan and have money within an hour.

Unfortunately these loans come with high interest rates. If not responsible, the person receiving the loan will have to pay back large amounts of interest.

So are they ethical? Payday loan providers are providing a service, that service is a short term loan. The fee is usually $15 per $100 of the loan which needs to be paid back within two weeks. If the loan receiver is not responsible for with their money, the cost rack up.

If viewed as fees instead of an interest rate, it comes into better perspective. If you want a $1000 loan, your fee is $150. Those this rate is still high, it gives a clearer interpretation of the loan and the industry in general.

It is then up to the person receiving the loan to decide if it is worth getting a payday loan. If the fees for missing a mortgage payment or over withdrawing their account are larger then the fees for a cash advance, then it makes sense for them to receive a loan. If not, it is up to them to make that decision. There is a plethora of information on the internet regarding payday loans and their pros and cons, with a little research, consumers can become well versed regarding the industry. With this information in hand they can make the decision to receive the loan or not.