Where Did Payday Loans Come From?

Payday loans originated in Cleveland, Tennessee in 1993, where William Alan Jones redeveloped the idea of offering short term loans in return for a post-dated cheque, which was written for the combined value of the loan and fees on top of this. Based on this model, Cheque Into Cash was founded, and Jones convinced the state to change the laws that prohibited charging overly high interest rates. In 1999, Jones began the payday loan industry which quickly became a worldwide phenomenon.