Preditory lending at it’s worst
It’s sad how lending companies often target those who can least afford it with easy loans and crazy interest rates.
A torrid example: Cash Call (a company that’s been advertising heavily in my area). In the state of Washington, they offer the following rates for loans:
HOLY CRAP!! On the $2,600 loan (of which, you actually get $2,525 because they subtract the $75 origination fee before paying you a dime), you end up paying back $9095.10 over 3 and a half years.
Even the 29.26% rate over 2 times as high as my worst credit card’s interest rate (and that’s for Exceptionally qualified applicants only) .
Of course, anyone with good credit would never use a service like this. This is just an attempt to extort money from people who have credit problems, offering them a loan with insane terms.
Of course, if you think that’s bad…. you should look at what the payday loan company’s charge. For example, this was pulled from MoneyTree’s website (again, rates for Washington State based on a 14 day loan)
This should be illegal.
Sadly… there are about 15 payday loan franchises within a 5 minute drive from my house, so business must be booming for them (as they suck the life out of those who can’t afford it).
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Looks like brain recovery.
I have my moments. That post was written just before I took my afternoon dose of meds. I enjoy far more clarity at that point.
Where financially irresponsible people meet greedy, immoral corporate thieves! What a country!!!
Add to that the sub-prime mortgage lenders, the reverse mortgage lenders, and the intrest only loans (yeah THAT’S a good idea). A lot of it is the predatory nature of those a-holes, but it’s also lack of knowledge by the consumer. For crying out loud, figure out what the hell you’re signing up for BEFORE signing up for it. If you don’t understand it and can explain to someone else, don’t do it. But yeah, there should be some kinda laws against this stuff. It’s out of hand.