Posted on 02/17/2005 5:39:09 AM PST by A. Pole
Free market usury bump.
You would have to be insane to do this.
Its legalised theft. No wonder the Mafia is about out of business, most of their scams are legal now. Drugs and Prostitution is all they have left.
The people who would get a loan under these conditions are the same people who blow their welfare/SSI checks at the casinoes every month.
I did not think about that.
Criminy some people are stupid, but usury laws should be all over this guy. What a pity.
One the one hand, I can see the need for places like this... When someone with no credit needs some money to get by for a short period of time, it can be helpful, but at the same time, it can be a trap.
On the other hand, due to the fact that the loan company is working with people with either bad or no credit history, it is inherently a high risk business. So they should be allowed to charge higher interest rates.
On the other hand, lending laws of the states should be such that if a car is repossed and sold off, after documented expenses, any remaining funds should revert back to the person who was the owner of the vehicle. And there should also probably be rules giving the owner a chance to try to get the vehicle back before it can be disposed of. Possibly a "waiting period."
All in all, it's an ugly situation. I had to work on some computers at a "payday loan" company once, and I saw the loan contract. IIRC, the APR works out to about 400%, due to the high interest rate and short terms of the loans (2 weeks).
Mark
You would have to be insane to do this.....I don't know about insane, but certainly uninformed about monetary and economic issues. These are people who do not know how to access opportunity.
Debt will crash this nation. A sign of the times.
Criminy some people are stupid, but usury laws should be all over this guy. What a pity.
____________________
He found a loophole and he's driving his Cadillac through it. My guess is permissible interest rates in the pawn business are high.
Yeah, the guy's a shark. But we need laws to reduce his interest rates why?? There's an easy way to avoid the bite. Don't borrow from the guy. Or if you do, don't borrow more than you pay back. Quickly. That's too demanding a set of requirements for grown men and women?
Someone please explain how the state has any right to interfere in an arm's-length business contract. Recently, my state's A.G. has been threatening to regulate (or eliminate) payday loans because the interest rates -- plainly stated in black-and-white on every such contract -- are "too high."
Those title loans places are all over my hometown. Me and my uncle always joke about opening up a title loan/bail bondsman/used car lot someday .. we figure we'd be rich in no time! :P
What about restoring the slavery for debts as it was in the free market Rome? Based on contract, you know?
By whom? You might be able to convince me that the state should be allowed to mandate that lenders follow some standard method of stating the effective annual interest rate on the loan application. But, as far as any limitations on the rate itself, that's for the lender and borrower to decide.
You'd probably have to repeal the bankruptcy laws, first.
It is being considered. I wonder of limited personal liability for the owners/shareholders/CEO will be repealed as well, so they cannot hide behind the corporate cover and cannot profit from the failed enterprises?
We live in the post-Christian times. The free market "conservatists" work or restoring ancient slavery while the liberal "progressives" work on restoring the decadence of Caligula and Elagabalus.
Freemarketeers and diversity types work together on dismantling Western civilisation.
So, you don't like the Biblical method of working off one's debts?
Yeah, I know. If these people aren't stepping in it this way, they will just find another.
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