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OMG, I can not believe this is legal
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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
Cat
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I'd like to know why payday loans *shouldn't* be legal - so long as legal methods of collection are used.
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Me, too, I want an explanation!
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7,747 Posts
:yikes: 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.
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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?
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Apparently there was some kind of legislation passed in the 80's which makes credit card companies and banks exempt from state usury laws.
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3,569 Posts
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
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
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
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
I thought their were laws that interest rates shouldn't be outrageous. I'm not sure what the specific number is?
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904 Posts
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.
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.
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7,747 Posts
:yeah: :yeah:
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2,375 Posts
Payday loan places are illegal if your'e military. Our area used to have a ton of payday loan places and they've all pretty much gone out of business.
We wouldn't be in this situation in the first place if it weren't for lenders like this loaning stupid amounts of money at stupid interest rates to people who couldn't afford it. How many people are going to be able to pay back a 79% credit card?
I believe in a free market but I'm so seriously over this crap.
When these crappy banks make bad loans, they write off the debt on their taxes and heck, sometimes they even get a bailout. How much of the bailout money was needed because of bad lending? How many people are on public assistance because of financial troubles that began with overextended credit? We all pay for bankruptcies in one way or another.
If we're going to have a free market economy, then have a free market economy for pete's sake. If you're going cry "free market" in the name of predatory lending and then remove the natural consequences of that stupidity on both the part of the lender AND the borrow, then the point is moot. If taxpayers are going to PAY for stupid lending and stupid borrowing, then taxpayers should have a right to place limits on that stupidity.
I'm not exactly in support of government regulations, but corporate America can't have it's cake and eat it too.
We wouldn't be in this situation in the first place if it weren't for lenders like this loaning stupid amounts of money at stupid interest rates to people who couldn't afford it. How many people are going to be able to pay back a 79% credit card?
I believe in a free market but I'm so seriously over this crap.
When these crappy banks make bad loans, they write off the debt on their taxes and heck, sometimes they even get a bailout. How much of the bailout money was needed because of bad lending? How many people are on public assistance because of financial troubles that began with overextended credit? We all pay for bankruptcies in one way or another.
If we're going to have a free market economy, then have a free market economy for pete's sake. If you're going cry "free market" in the name of predatory lending and then remove the natural consequences of that stupidity on both the part of the lender AND the borrow, then the point is moot. If taxpayers are going to PAY for stupid lending and stupid borrowing, then taxpayers should have a right to place limits on that stupidity.
I'm not exactly in support of government regulations, but corporate America can't have it's cake and eat it too.
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1,281 Posts
Wow!! I understand the arguments that say that people should read the small print -- but when someone is desperate to survive after going into medical debt or whatever, this is exploitation and even if it's legal, it's immoral. They'd be better off offering a credit card with a $50 credit limit at a reasonable rate than a $700 card at an 80% rate.
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