In Boston, state banking officials sent out a memo to lenders to stop isuing illegal cash advance loans. With some of these loans, consumers often were struggling to pay that loan back and many times more than the amount originally loaned.

Many states limite the amount of cash that can be loaned to consumers (usually upto $5000 with interest rates capped at 23%)

It has been shows that many lenders where involved in charging super high rates up to 500% over the regular interest rates.

Government officials are suggesting that people first either ask their employer for a short term loan or tap in to their credit card before opting for a cash advance loan.

If you think you have been overcharged on a cash advance loan, be sure to contact the better business bereau in your area.