this is often the only way for poor people to get money for emergency expenditures. Car breaks down and you need it for work or you get fired? This is your only option if you come from a poor community.

And the rates are “ridiculously” high because if not the business model doesn’t work. If you loan someone 300 bucks for a month, you have to charge 20% Annual interest plus a $20 fee or you aren’t making enough money for it to even be worth your time.
Some cities have outlawed them and the payday loan places haven’t lowered their rates, they just left.