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Negotiable instruments: language in use (2)

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fraud in the factum

Since the 1980s, when the banking industry in the U.S. was deregulated, there has been a great increase in ‘payday loan’ companies specializing in small loans to help customers until the next payday. For example, a customer needs $200. She goes to the company and writes a personal check for $215, the amount of the loan plus a $15 fee.

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