[jjeaff]

Advertising a yearly rate would make it more recognizable as an exorbitant rate. Though, in the same vein, banks should also disclose similar data for their "fees".

Kind of like how grocery stores like to sell two different sizes of a product and give you the price per ounce on the first, but only price per pound on the second. Makes it difficult to compare. They are hoping you will choose the larger, even though it is often more expensive per unit.

As for why someone doesn't come in and sweep the market with lower prices, that's because price is hidden. So how could a competitor undercut the price when it is difficult to compare?

But i actually don't think the payday lenders are the real problem. My guess is that they have pretty high default rates and I would be interested to see what their average margins are. The real issue is that there isn't a better option, perhaps created by regulation to better serve poor and under banked communities. Provide that, and the payday lenders will disappear overnight.