Posted on 08/14/2012 3:05:09 AM PDT by GeorgiaDawg32
It runs several times a day and I finally paid attention to the "fine print".
Interest rate on a 10k loan is 89.66%, payments $743.99 for 84 months.
Now, I'm not against a private business lending money at an interest rate, but doesn't 89.66% seem a little high?
It’s not high enough if no one pays back - obviously those loans are priced for very poor credit borrowers that no one else will lend to.
They are loan sharks.
That’s what we call good, old-fashioned usury.
As well as being loan sharks which I advise staying as far away as you can it’s a really creepy commercial. Loan sharks are predators
By the way I just learned of a 62 year old widow who lost her job and tried to get a loan from a lender she found on the Internet to meet unexpected expenses. Some one phoned her and got her bank account number and other information and drained her bank account of the few thousand dollars of savings she had.
They’re indians. They scalp people. It’s what they do.
But wait, it gets worse than just the suicidal interest rate:
“All loans will be subject solely to the exclusive laws and jurisdiction of the Cheyenne River Sioux Tribe, Cheyenne River Indian Reservation. All borrowers must consent to be bound to the jurisdiction of the Cheyenne River Sioux Tribal Court, and further agree that no other state or federal law or regulation shall apply to this Loan Agreement, its enforcement or interpretation. The loan agreement contains an agreement to arbitrate all disputes in which borrowers agree to waive their right to a jury trial, to have a court decide any dispute, and to participate in a class action lawsuit, and to certain discovery and other procedures that are available in a lawsuit. ... in the event you opt out of arbitration, any disputes hereunder shall nonetheless be governed under the laws of the Cheyenne River Sioux Tribal Nation.”
Precisely. They are not bound by the laws of any state or the US Gov. because they are operating on their tribal lands and following their tribal laws.
But the gal IS a cutie...
Holy crap. It’s indentured servitude.
I was under the impression that loan sharking was against the law, and that there were federal statutes governing - and severely penalizing - usury.
How is it that this business is allowed to exist?
I listen to to much talk radio but I heard of a city in CA that borrowed 100 million to fix up their schools. Since they did not want to raise taxes to pay the note off some brainiach thought of 40 year bonds with the first payment 20 years from the date they bought it..
Can you see where this is going?
That 100 million is going to cost the city 1 BILLION.
I wonder if they borrowed the money from the same company.
I have seen some of the ads for these loan sharks. “our loans are expensive” ya.. That is a understatement.
It’s an Indian group on a reservation. State/federal laws don’t reach that far.
Their rates are on par with most payday loan companies. However, their maximum amount is much higher.
It’s outrageous interest.
The simple answer is, don’t borrow money from them.
Strange - and even bizarre - that the federal government allows these guys to do this sort of thing and yet won’t allow them to sell cigarettes.
The feds won't let them cannibalize an existing revenue stream (source of graft). It's ok for them to go out and make a new one of their own.
That’s cool. Explain why they get to vote in U.S. elections, though., among other things.
“I notice you don’t recommend any alternatives,” the reader sent. I e-mailed a reply directly, but it bares repeating to the full audience. If a writer was scribbling about what a bad idea suicide is — if that author’s intent was to point out that suicide is bad, that it ends discussions of future alternatives, that it affects more than just the victim, and that one needs to carefully consider one’s place in the universe before committing the act — that’s enough. I don’t think there’s an implicit obligation for that writer to explore whether it’s better to use a rope over a gun or pills over a razor. Same kind of discussion here. Just because I intend to demonstrate just how expensive Western Sky’s loans are doesn’t mean I owe you fifty other ways to commit financial suicide. Critically speaking, an alternative for those hard up for cash and considering a loan through Western Sky or any other online sub-prime unsecured lender might be sticking up a gas station or bank, but I wouldn’t recommend it.
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