How many people know what a Predatory Loan is!

[F=MA]

If doctors jacked their fees 10x's just because they could get away with it people would be up in arms! But hey, no one's forcing you to go to the doctor....right?

I can only assume no one here complained when gas prices were $4/gallon not too long ago...free market capitalism and all. Don't like the price, don't consume the product or service.

Predatory lending would be more acceptable if we equipped young adults with a better financial education before giving them a diploma, or as parents we did a better job preparing them for adulthood.

Many of us here are fortunate to never have been in a situation where our back was against the wall and a lender of last resort was the only option available for meeting an emergency.

Sorry...can't really formulate anything more coherent than that.

Disclaimer...I do own 100 shares of Cash America stock (CSH).

This has to be one of my most idiotic posts. I can't even figure out what the point of it is.

 

[afterhours]

Again, lack of morals....could you sleep at night knowing you're charging your customers 400% interest on their money? Myself, no way....guess that's the difference in the world. Some people have no ethics or morals of decency towards others.

1. its not 400%, stop quoting bad info
2. they are not borrowing thier own money....they are borrowing the money of the payday loan people....borrowing money costs.

 

[jdsbusa]

Regardless of whether these companies were around or not, those that run them would find other ways to gouge. People without ethics don't change because they don't make enough money, they adapt and find other ways. I never said anything about anything being cheap or easy as possible. 20% on a credit card seems fair to me, it's a service provided and you can't expect to not have to support the costs the company carries, but 400%? I'm friends with 2 people that run a local cash/payday store and they've talked openly about how much money they bring in on a daily basis and joke about how people are getting taken for a ride - clear cut example of what these people do and how they think. People that don't care for the customer at my work are promptly shown the door - we have no place for those who don't care about the customer and are "in it for themselves".

 

[m_ridgeway]

Many of us here are fortunate to never have been in a situation where our back was against the wall and a lender of last resort was the only option available for meeting an emergency.

I have taken 2 high interest signature loans and financed a car at 17percent. I don't feel slighted. They took a chance on me paying them and I did. I had to use the services they provided so should I feel like I was wronged because I entered an agreement?
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[m_ridgeway]

Like fma said this is going nowhere. maybe they should go to church and donate it all to the lord. Would that make it better.
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[jdsbusa]

1. its not 400%, stop quoting bad info
2. they are not borrowing thier own money....they are borrowing the money of the payday loan people....borrowing money costs.

Maybe not in your state but in IL the local is 463% - EXACTLY. Do the math on that, compound it out and see what the interest fee is in a week's time on say $400. It's not pretty. I'll tell you this Matt - I have had the unfortunate situation of having to use a payday loan ONCE. My flexcard was turned off by ADP and my wife needed new glasses (her's were crushed in an accident) just so she could drive and get to work and my kids to school. I was lucky enough to only have 4 more days until payday so the interest was only about $30, but in that short period of time a larger loan would have really sucked! My flexcard was turned back on 2 weeks later after they found the error, I was reimbursed for her glasses but the $30 was gone. And this was from the same place I'm friends with - they make no distinction between customers. Everyone pays the same rate. Many states do have limits on these sort of businesses, but the only restriction in IL is no more than 2 payday loans at a time. I'm not giving out any "bad" information - this is the way it is in the state I live in.

 

[skydivr]

Don't worry, Obama is gonna buy it for you!

 

[jdsbusa]

I have taken 2 high interest signature loans and financed a car at 17percent. I don't feel slighted. They took a chance on me paying them and I did. I had to use the services they provided so should I feel like I was wronged because I entered an agreement?
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17% isn't that bad on a car loan, it's the way they compound it here on cash/payday loans that generates so much in fees.

 

[m_ridgeway]

Did you not see that I've used them twice. Your not the only one that's had hard times. Everyone does. If they weren't their then what would you have done?
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[afterhours]

Maybe not in your state but in IL the local is 463% - EXACTLY. Do the math on that, compound it out and see what the interest fee is in a week's time on say $400. It's not pretty. I'll tell you this Matt - I have had the unfortunate situation of having to use a payday loan ONCE. My flexcard was turned off by ADP and my wife needed new glasses (her's were crushed in an accident) just so she could drive and get to work and my kids to school. I was lucky enough to only have 4 more days until payday so the interest was only about $30, but in that short period of time a larger loan would have really sucked! My flexcard was turned back on 2 weeks later after they found the error, I was reimbursed for her glasses but the $30 was gone. And this was from the same place I'm friends with - they make no distinction between customers. Everyone pays the same rate. Many states do have limits on these sort of businesses, but the only restriction in IL is no more than 2 payday loans at a time. I'm not giving out any "bad" information - this is the way it is in the state I live in.

you did not pay 400%.

 

[F=MA]

I don't think the majority of payday loan customers feel wronged either...beyond typical complaining that 99% of us do that everything costs too much. I think the majority are happy to be able to have an option to keep the electricity on, gas in the car that gets them to work, or a roof over their head.

If it weren't for pawn shops I don't think I'd have made it through college.

 

[jdsbusa]

personal responsability......


first off lets get some real info into the conversation. a payday loan is a short term loan, and it is not 400% interest. that is just another half truth that people repeat w/o knowing the facts.

a typical payday is a very short term loan, $100.00 for 14 days.

$100 x 400% = $400.00

nobody is paying $400.00

the interest is compunded daily usually around 1% -1.10% daily.

1.10% x 356 days = 391% (thats where you get the 400% interest people keep repeating.

in reality you get a loan for 14 days

$100 x 1.10% = $1.10 per day

$1.10 x 14 days = $15.40 total interest


so your $100.00 loan will cost you $115.40 to pay back.


i have members of my family that are irresponsable, live above thier means and go to these places....they borrow money, bust ass to pay it off and then go out and buy more crap that they cannot afford.

afterhours, most of the payday loans are calculated on a monthly, not annual basis, no one here locally bases it on a 365 day system, they're all 30 days. Re-do the math based on 30 days. What happens is say a $400 loan is out for 90 days (the standard offer here). In the end you'll pay over 3 times the original amount of the note, assuming you make payments on time. Whatever state you live in, if they're only calculating it on a 365 day system, they're off because a payday loan is a short term note. Even the places online compound interest every 30 days, not annual.

 

[Mr Brown]

All this talk about personal responsibilty, but none about corporate ethics. Do you guys understand that eminent domain has now been expanded to include private enterprise? This means that for example if walmart wants to put a supercenter on top of your house, that you own outright and worked hard to pay for (Mattstang for example), they can make you a lowball offer and force you to take it. Absolutely nothing you can do about it. All the company has to do is grease the right palms, and it's done.
We have gotten to the point that money is the only thing that matters anymore. It's not right morally, and does not bode well for the future of our way of life.....

 

[jdsbusa]

you did not pay 400%.

only because I paid it off in 4 days, had it gone the full 90 days, I would have paid 463%. If I had the original paperwork I'd scan and post it for you but this was 3+ yrs ago.

 

[m_ridgeway]

17% isn't that bad on a car loan, it's the way they compound it here on cash/payday loans that generates so much in fees.

17 is horrible. That's like buying it on a credit card. If I can't finance a used car under 10 I won't even consider it. New should be even better than that.
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[afterhours]

Maybe not in your state but in IL the local is 463% - EXACTLY. Do the math on that, compound it out and see what the interest fee is in a week's time on say $400. It's not pretty. I'll tell you this Matt - I have had the unfortunate situation of having to use a payday loan ONCE. My flexcard was turned off by ADP and my wife needed new glasses (her's were crushed in an accident) just so she could drive and get to work and my kids to school. I was lucky enough to only have 4 more days until payday so the interest was only about $30, but in that short period of time a larger loan would have really sucked! My flexcard was turned back on 2 weeks later after they found the error, I was reimbursed for her glasses but the $30 was gone. And this was from the same place I'm friends with - they make no distinction between customers. Everyone pays the same rate. Many states do have limits on these sort of businesses, but the only restriction in IL is no more than 2 payday loans at a time. I'm not giving out any "bad" information - this is the way it is in the state I live in.

463% APR = 1.30% daily

$400.00 x 1.30% = $5.20 per day

$5.20 x 4 days = $20.80



you got them to lend you $400.00 and you had to pay back $20.80 interest.

this seems fair...

 

[afterhours]

only because I paid it off in 4 days, had it gone the full 90 days, I would have paid 463%. If I had the original paperwork I'd scan and post it for you but this was 3+ yrs ago.

it still would not be 463%

 

[jdsbusa]

All this talk about personal responsibilty, but none about corporate ethics. Do you guys understand that eminent domain has now been expanded to include private enterprise? This means that for example if walmart wants to put a supercenter on top of your house, that you own outright and worked hard to pay for (Mattstang for example), they can make you a lowball offer and force you to take it. Absolutely nothing you can do about it. All the company has to do is grease the right palms, and it's done.
We have gotten to the point that money is the only thing that matters anymore. It's not right morally, and does not bode well for the future of our way of life.....

Thank you Jeremy.....the point I had in the first place.

 

[jdsbusa]

17 is horrible. That's like buying it on a credit card. If I can't finance a used car under 10 I won't even consider it. New should be even better than that.
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May seem bad to you but it's about credit risk....people that have no credit can't be allowed the same rate as someone with say a 750+ FICO, they've earned it. But 17-20% certainly isn't unfair for some cases.

 

[m_ridgeway]

All this talk about personal responsibilty, but none about corporate ethics. Do you guys understand that eminent domain has now been expanded to include private enterprise? This means that for example if walmart wants to put a supercenter on top of your house, that you own outright and worked hard to pay for (Mattstang for example), they can make you a lowball offer and force you to take it. Absolutely nothing you can do about it. All the company has to do is grease the right palms, and it's done.
We have gotten to the point that money is the only thing that matters anymore. It's not right morally, and does not bode well for the future of our way of life.....

So that's why it took 8 years for a multi billion dollar company to buy a ROW through undeveloped unproducing land? Btw it actually took more than 8 years. the owners lands were restored and useable when we left it.
What you posted is an extreme exageration. Talk to a lawyer about codemnation. Its not easy its very lengthy and costly. Most times a company that has the money will relocate and or make reasonable offers just to avoid the process.
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