If it was worth more, a borrower could pay off the loan and get the stock back, roll over the loan into a larger one or ask the stock be sold and take profits.

FORBES: Magazine Article

This should mean payday lenders only roll over a loan to a customer on a maximum of three occasions.

BBC: Payday lenders' new code in place

Banks have picked up some of the slack, but many are reluctant to lend because their capital bases are already suffering from loan losses, and they are uneasy about the ability of many customers to roll over the paper.

ECONOMIST: The Federal Reserve

When you roll in the insurance fee into the loan balance you have a loan to value ratio that starts at over 98%.

FORBES: Meet The New Subprime: It Will Cost Us Billions