A Payday Loan fee may under certain circumstances be tax deductible.
Do you have your own business? If you have a business and use the payday loan for business purposes I believe you could then write off the fee. I recommend that you talk to tax professional to be sure.
Most consumers who choose to use a payday loan product go to because the fees are fair and disclosed up front. Payday lenders are an alternative to paying NSF fees.
Penalty fees for NSF and overdrafts are a huge and growing expense for bank
customers
.
Consumers are paying at least $10 billion per year or as much as $22.7 billion just for overdraft loans and overdraft protection according to CRL’s estimates based on analysts’ assumptions and reported checking account service fee revenue. The total cost to consumers of NSF and overdraft fees at all financial institutions in2003 was $33 billion, according to Mike Moebs of Moebs Services. CFA found that over a fourth of big banks cite overdraft fees as a source of important revenue.
Payday loan companies save consumers billions a year in NSF bank charges
The question for many consumers is do they want to pay a $30 NSF to the bank plus a $30 NSF Fee to the merchant for each NSF check. The consumer is being charged $60 for 1 NSF check VS. getting a payday loan cash advance for a flat fee $15 dollars?