More proof lending is predatory

[Van]

Take a look at the interest rates on this national lender, Im aware its not a bank but the loans are underwritten by banks but these interest rates even for those with exceptional credit are out of this world.

Rates

 

[webbydude]

Funny you mention that. Here in Ohio there's a fairly decent sized uproar over the payday advance operations. More to the point...they pretty much got regulated out of business. Those APRs I see on your link just prove WHY Ohio did what it did.

http://www.buckeyestateblog.com/stirckland_signs_hb_545_cracks_down_on_payday_lenders

 

[HD MM]

There's an easy way to avoid such unruly interest rates on small loans and fees for cashing a check: Don't go to a check cashing place to do this, open a checking/savings account at an actual bank.

Who exactly are these places "preying" on? It's up to the consumer to use their services or not.

 

[Van]

Basicly these places prey on the individual with credit issues and those who have low income. They make it possible to borrow money that a bank wouldnt loan out but the interest rates are excessively high wich is common with high risk credit cards that were big up till a few years ago.


Before I moved out of Michigan the payday advance places there were taking a big hit from the state over the same issues there.

 

[navychop]

And on those afraid of banks. We have a guy who used to go to a liquor store to cash his check. He was charged to cash the check, and had to spend some large percentage of the check in the store. Well, he was going to spend it there anyway.

Bank would cash it for free. We are on mandatory direct deposit now, so he has a special bank account. Goes to the ATM on payday, withdraws every penny.

 

[snathanb]

Take a look at the interest rates on this national lender, Im aware its not a bank but the loans are underwritten by banks but these interest rates even for those with exceptional credit are out of this world.

Rates

And those rates are downright generous compared to some payday loans. The APRs of some of those loans run into the 1000s.

 

[snathanb]

Basicly these places prey on the individual with credit issues and those who have low income. They make it possible to borrow money that a bank wouldnt loan out but the interest rates are excessively high wich is common with high risk credit cards that were big up till a few years ago.
.

Often (not always) they prey on the greed of individuals with credit issues and low income. They want to buy houses, cars, and toys that they simply don't have enough money for, which means they shouldn't be buying them in the first place.

But hey, everyone has to own a house, 22 inch spinning rims, a PS3, a plasma TV, and an iPhone, right? Right? It's your right as an American, regardless of how little money you actually make.

 

[stevenl]

If you want to take a loan for 1000% interest or 50% interest it should be your choice as a consumer. After all it only affects you.

 

[Derwin0]

Basicly these places prey on the individual with credit issues and those who have low income.

If someone has credit issues, the bank needs to set a high interest rate, as there's a good chance the person won't pay it all back. With a high interest rate, the bank is ensured of getting a fair return before the eventual default on the loan.

 

[HD MM]

If someone has credit issues, the bank needs to set a high interest rate, as there's a good chance the person won't pay it all back. With a high interest rate, the bank is ensured of getting a fair return before the eventual default on the loan.

+1.

High risk lending = High interest rate. Nothing new here.

 

[Pepper]

The only thing missing is the collections "agent" with a baseball bat, ready to bust your kneecaps if you can't pay.

 

[stevenl]

Dont take loans you cant pay back. Pretty simple.

 

[cybok0]

Dont take loans you cant pay back. Pretty simple.

It surprising how many people don't follow that simple rule.

 

[snathanb]

If you want to take a loan for 1000% interest or 50% interest it should be your choice as a consumer. After all it only affects you.

That is, of course, until mortgage lenders are offering home loans to people who should never buy a house, then they go bankrupt and ask the government to bail them out...... with your tax dollars.

 

[charper1]

Sob story, poor pitiful borrowers post!


These same people that claim this is predatory would also be the same ones to SUE for discrimination if they stopped these services making it impossible for them to even get a loan. No win situation for lenders.

AMEN to the posts above; don't sign for a loan you cant afford!

 

[stevenl]

That is, of course, until mortgage lenders are offering home loans to people who should never buy a house, then they go bankrupt and ask the government to bail them out...... with your tax dollars.

The home owner should of never taken a loan they couldn't afford. Personal responsibility. Nor should the lender. They both dug the grave they should sleep in it.