&gt;  You have to provide a pay stub, and a post-dated check, and the money just gets taken out on the day of.<p>That doesn&#x27;t prevent missing payments; if it did, the risk profile on payday loans would be much different than it is and the costs would be much lower, in line with other, lower-risk, loans that exist in the market. There are several reasons why it is possible to miss the expected payment even with the paystub + postdated check approach.<p>(1) There&#x27;s no guarantee that the <i>next</i> paycheck will be the same size as the previous one, particularly with the population (largely <i>not</i> salaried, often without paid leave available, and often with little job security) that needs payday loans.<p>(2) There&#x27;s no guarantee that someone <i>else</i> won&#x27;t reach into the account and take money before the payday lender gets it (including the bank itself, which <i>absolutely</i> will beat anyone presenting a check if there are fees, etc., due.)<p>(3) Its possible to cash&#x2F;deposit paychecks other places than the account on which the postdated check is drawn, and people might do so if they have <i>another</i> unexpected expense, and decide paying that is more important than paying the loan.