Proof of employment and acceptable spending habits.
Payday loan companies usually have the borrower fax the following documents in for review:
A copy of a borrower's most recent bank statement. This is to check for a few things: How much money has been going into the account--and from whom. How much money has been going out of the account--and to where. Are there already other payday loans the person is paying on? In other words, will the borrower be able to pay back the loan--and fees?
A copy of the borrower's most recent pay stub. This is to verify that the borrower is currently employed and getting a paycheck.
A copy of a cancelled/voided personal check. This is used to get bank information--like the borrower's bank account number and bank routing information--so a direct deposit of the loan can be transferred. This information is also used to withdraw fees directly from a borrower's bank account when fees are due.
Beware faxless payday loans.
Some payday loan companies claim their process is "faxless"--no faxing is required. It has been reported to PLIWatch.org that at least one "faxless" company wants to get access to a person's bank account to verify banking statements and history online. (This is risky for the borrower--divulging a username and password is never a recommended practice.) If faced with the choice of giving up a username and password or faxing documents, it's much safer to fax documents with personal information.