OMG, I can not believe this is legal

**Josephhgoins** · 02-09-2011, 11:33 AM

Credit card had a 79.9% APR from First Premier Bank - Yahoo! Finance

79.9% APR on a Credit Card!!

**Sassyclass** · 02-09-2011, 11:54 AM

Oh I can believe it's legal, but I can't believe there are people out there who would actually accept a card with that kind of APR. No wonder this country is in debt up to it's stars & stripes.

Cat

**bumplett** · 02-09-2011, 12:00 PM

that's called stupid tax.

I think it's great!

And yet the customers keep coming. The company said it serves nearly 3 million customers nationwide and receives anywhere from 200,000 to 300,000 applications a month.

**HappyMama** · 02-09-2011, 12:14 PM

Amazing isn't it. It is so sad with just the minimum payments they would never be paid off.

**craftypam** · 02-09-2011, 02:15 PM

You know how loan sharking is illegal? I want someone to explain why this and payday loans are any different and making them legal.

**Greebo** · 02-09-2011, 02:39 PM

Originally Posted by craftypam

You know how loan sharking is illegal? I want someone to explain why this and payday loans are any different and making them legal.

I'd like to know why payday loans *shouldn't* be legal - so long as legal methods of collection are used.

**Ramona** · 02-09-2011, 03:00 PM

Originally Posted by craftypam

You know how loan sharking is illegal? I want someone to explain why this and payday loans are any different and making them legal.

Me, too, I want an explanation!

**pollypurebred39** · 02-09-2011, 03:14 PM

Now that's just crazy! I just can't believe anyone would do this to themselves unless they were not capable of understanding the math involved here. I know there have been lots of young people who I've taught to count change back when their register did not work properly. I've taught cashiers how to figure % off on sales, and how to calculate sales tax too. And I've taught several people to tell time on an analog clock and how to balance their bank book. Math skills are sorely lacking in this country. These are the only people I can see getting caught up in this kind of mess, ones who don't know any better.

**Jamauk** · 02-09-2011, 03:30 PM

I see no reason why this (and payday loans) should not be legal. It is the lender's responsibility to read all of the terms of the loan before signing on the dotted line. If they are stupid enough to agree to this....well then, they have issues.

**Shelli_wnj** · 02-09-2011, 04:24 PM

Originally Posted by pollypurebred39

And I've taught several people to tell time on an analog clock and how to balance their bank book. Math skills are sorely lacking in this country. These are the only people I can see getting caught up in this kind of mess, ones who don't know any better.

Yes, I am teaching people how to read analog time and balance books - well, count money actually. They're my kids! LOL I find it sad that people can reach their teen years without knowing this stuff, and commend you for taking the time.

For the OP - that is insane! Maybe people just don't read the not-so-fine print?

**monkeywrangler71** · 02-09-2011, 04:31 PM

Originally Posted by craftypam

You know how loan sharking is illegal? I want someone to explain why this and payday loans are any different and making them legal.

Apparently there was some kind of legislation passed in the 80's which makes credit card companies and banks exempt from state usury laws.

**bumplett** · 02-09-2011, 04:38 PM

IMO - Difference being, loan sharks typically kept the government out of the 'loop

I see nothing wrong with a legitimate business charging 300% interest as long as they are up front with the info from the start.

If the borrower isn't intellegent enough or is desperate enough to sign on the line, so be it.

They don't loan money to children.

These are grown adults choosing to borrow money. Period.

Loan sharks ensured payment with threats of violence. They require no collateral other than the borrower and his family's well being. "Leg-breakers" were often employed by loan sharks to be sure they receive payment.

http://www.loansharks.com/fight-back.shtml

**Judi Dial** · 02-09-2011, 05:00 PM

The payday loan folk left NH, as the state passed a law that made them heavily regulated. They said, "We can't make enough profit then...woe is me!" and the legislators just said, "Change your practices, the profit margins allowed are liveable."

But every single one of them that I know of folded and went away. (smirk)

Judi

SORRY THIS WAS WRONG! NH made them illegal, at least acc. to Wiki. sorry for the misinformation! JD

**craftypam** · 02-09-2011, 05:45 PM

Originally Posted by Greebo

I'd like to know why payday loans *shouldn't* be legal - so long as legal methods of collection are used.

I thought their were laws that interest rates shouldn't be outrageous. I'm not sure what the specific number is?

**Josephhgoins** · 02-09-2011, 08:34 PM

I know that many people would think that my sense of morality is off, but I see this as wrong. These guys customers would have to be either slow or desperate to do business with them and either way shouldn’t be taken advantage of.

There are so many things that are illegal that I see as much less offensive crimes than this.

Yes, yes I know we are in a Capitalist society and supply and demand and all, but there is no way anyone can tell me this is a Just and honest way to make a buck.