Tim Miller’s letter to the Wall Street Journal takes a mathmatical approach to the whole triple digit APR issue. This is the biggest argument consumer groups make.
A payday loan is intened to cover a borrower for a short period of time. When you annualize a product that spans between 2-10 weeks, it does not tell the whole story.
The CFSA has best practices in place. One of the requirements of their members is that a loan can only be extended 4 times for a total of 5 concurrent loans.