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Illegal Payday Lending. Payday loans—small, closed-end loans due in complete regarding the borrower’s next “payday”—have an extended and sordid history. Payday loans—small, closed-end loans due in complete in the borrower’s next “payday”—have a lengthy and history that is sordid. For many years, unscrupulous lenders took advantageous asset of hopeless borrowers, who will be not able ...