Predatory? No one FORCES any individual to use a “payday” loan, and it’s way cheaper and less threatening to one’s health than your local mobbed-up loan shark!
While their interest rates are high, do they serve a purpose; do they help people who are in a financial jam?
As I understand it, these places give you what is supposed to be an advance on your next paycheck.
You have other problems with money, if you find you have to take out an additional loan to pay off the first loan, rather than just use your paycheck to pay off the first loan and be done with it.
A lot of these payday loan folks grab people off the street, drag them into their offices and force them at gunpoint to take out the loans they don't want or need. Its called drumming up business. (/s)
“No one FORCES any individual to use a “payday” loan”
In fact one could argue they provide a valuable service for the stupid, and their rates are necessary to protect their business against 50% + default.
Get a loan from the mob, and it may literally cost you an arm and a leg.
Exactly. Everybody knows exactly what they're getting into. Barring outright fraud, leave people alone and let them deal with the consequences of their actions.
Exactly. Everybody knows exactly what they're getting into. Barring outright fraud, leave people alone and let them deal with the consequences of their actions.
Exactly. The freemarket is called “predatory” because the deadbeats can’t make payment they AGREED to. If the gubmint forces how the lenders operate, perhaps the gubmint should also charge those that cannot pay back their obligations. It is only fair. Why only punish the businesses?
Nanny state. Big banks don’t want the competition with all their fees. For average working poor these places are cheaper than banks. If you owe money to a merchant - no problem getting a new account at different bank. If you owe money/fees to a bank then no bank will take a new account from you. Checks out clear in 2 days or less but deposits take 10-14 and they tweet it maximize bad check fees, overdraft fees, min balance fees, ....
Mob and payday/check cashing places have to compete for business but big banks us congressional and regulatory lobiests to fix the game.
Just look at numbers (lottery) payouts to see the biggest crooks. Pick 3 - state pays 400 but the mob pays 850 on 999:1 odds. Banks are the same IMHO.
Read the FINE PRINT on these so called "loans".
Interest rates range from 275% to 492%
Agreed.