AT RESTThere's been a few adverts on TV about short term loans. Cash train and a few others.
In was curious to see what interest they charge ( no I don't need a loan). There is no interest just a fee. They ask about your payday.
A 1 week loan of $600 had a fee of $125!!!!.
Those cash mafia should be more accountable, the use a loop hole and the vunerable living week to week are going to be ripped off
YarnMaster
SubscriberPayday lenders - some states limited them to charging the equivalent of only 48% annual percentage repayment (APR) which includes fees and charges. But yeah, in other states only the interest is capped and they charge a fee instead.
Assuming the loan is for 14 days this fee ($125) on a $600 loan represents ~550% annual percentage repayment.
APR = ((Loan Fee/Loan Amount) / (Loan Days/365) * 10000) / 100
Debt traps for the poor.
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Wizard
I was just reading a UK news paper a few days ago , and it said the UK goverment has given I think it was 3 months to none bank lenders to conform to new rules to stop these money lenders ripping poeple off . We should also be doing it here ..Originally Posted by Ferret
OldBushie
If your silly enough, then to bad
Interest free! Great scam
People should be responsible for their own actions
Swaggie
You see these sharks in every city in the USA. Always in the poorer parts of town. Payday loans, car title loans, bail bonds, pawnbrokers, with signage usually in Spanish and English. One sign on an establishment in Van Nuys Ave, Van Nuys, was "abogados onestos", or in English "honest lawyers". This street, between the busway and the courthouse is lined with shopfront loan and other sharks preying on the ethnic poor and illegals.
URSUSMAJOR
Master
SubscriberIrrespective of how each individual got in that vulnerable position in the first place, it is sad to think that there are enough people who are so desperate that they can support an entire industry of lenders of last resort like that.
Super Moderator
The other one is the checks cashed (in English "cheques cashed") where they charge at least 10% of the face value of the cheque to convert it to cash.
Again this is ripping off the poor as they are unable to open a bank account and their welfare is paid by cheque. Meaning their pitiful welfare payment is taxed a further 10%.
You won't find me on: faceplant; Scipe; Infragam; LumpedIn; ShapCnat or Twitting. I'm just not that interesting.
SysAdmin (Owner)
is good business practice they will tell you...
they are filling a need...
parasites, is the term i use.
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Swaggie
I forgot that one. You see the Hispanic day labourers queued up at these establishments in the afternoons to cash their cheque for their days toil at less than the minimum wage. Illegals without ID documents can't open a bank account.
URSUSMAJOR
Super Moderator
Hi Brian
I believe you will find it is more intrusive than that, to have a bank acount you need to have an address, (i.e. not homeless) and maintain a minimum balance so affects US citizens as well.
Diana
You won't find me on: faceplant; Scipe; Infragam; LumpedIn; ShapCnat or Twitting. I'm just not that interesting.
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