For the folks taking payday loans this is even worse. The whole feature is designed to make you spent more than you can afford, especially preying on the more desperate as opposed to the ones who could just afford the thing they where buying. Essentially this is just a micro-loan that gets prohibitively expensive when you miss a payment, which you are obviously more prone to when you have issues paying back regular loans already. Actually, it's exactly like a payday loan works and abusing the same people.