Montecresto
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Like I said, my wife worked for one, and yes they can tell if you have another one out already.
Yes, they can garnish wages, they can sue them, they can use agencies that chase people around and get money back, but it's difficult and a great number of those loans just get written off. And absolutely they turn lots of people down, you have to have a demonstrable source of income, you have to be able to prove where you live and you have to have a number of references who will vouch for you. This typically takes an hour or so on the phone, but not everyone qualifies.
Where did you get the idea that the banks own payday loan companies? That's absurd. And why would anyone in their right mind pay 25% interest? You'd have to have really horrible credit to get those terms, you probably couldn't get any kind of loan from anyone at that point.
Greetings, Cephus. :2wave:
Thanks for answering my questions. :thumbs: From what I've been reading here, they must charge a very high rate of interest. Is that the reason some are asking for more regulation on those types of lenders? I don't know if that's fair, since the lender is taking a risk, as all lenders do, but no one is coerced into asking for such a loan, so if a person agrees to pay a very high rate of interest, isn't that their business, and not something the government should get involved in? It does sound like Payday Lenders do serve a niche that is apparently needed by some people.
Greetings, Cephus. :2wave:
Thanks for answering my questions. :thumbs: From what I've been reading here, they must charge a very high rate of interest. Is that the reason some are asking for more regulation on those types of lenders? I don't know if that's fair, since the lender is taking a risk, as all lenders do, but no one is coerced into asking for such a loan, so if a person agrees to pay a very high rate of interest, isn't that their business, and not something the government should get involved in? It does sound like Payday Lenders do serve a niche that is apparently needed by some people.
Greetings, Cephus. :2wave:
Thanks for answering my questions. :thumbs: From what I've been reading here, they must charge a very high rate of interest. Is that the reason some are asking for more regulation on those types of lenders? I don't know if that's fair, since the lender is taking a risk, as all lenders do, but no one is coerced into asking for such a loan, so if a person agrees to pay a very high rate of interest, isn't that their business, and not something the government should get involved in? It does sound like Payday Lenders do serve a niche that is apparently needed by some people.
How Big Banks Finance Billions In Predatory Payday Lending
– Major banks provide over $1.5 Billion in credit available to fund major payday lending companies.
How Big Banks Finance Billions In Predatory Payday Lending | ThinkProgress
I will say that I will need to change my claim, I was a little wrong, but, banks do work with payday loans giving them credit....Which is a form of financing...
Hey there Polgara, it's beyond predatory, and it needs to and will be reigned in.
Payday lending has exploded in the last few years. Colorado is one of the few states with an industry-wide annual report available. For 1997, the Attorney General reported that 188 lenders made 374,477 post-dated check loans totaling $42,823,089. The average annual percentage rate charged on these loans was 485.26%. The average term for loans was 16.58 days. Over 58,000 of these loans, or 15.5%, were refinanced. For the year ended 12/31/97, Washington reported 562,031 loans made by check cashers. These loans were for a total of $144,923,986. The average size loan was $255. Lenders collected $21,541,338 in fees and charged off $2,054,338. Indiana reports that the number of payday lenders jumped from 11 in 1995 to 59 in 1997, with loan volume increasing from $12,688,599 in 1995 to $98 million in 1997.
Oh, and look at the polling numbers, there's only three individuals (thankfully) that think 425% is just ok!!
Greetings, Montecresto. :2wave:
Wow! 485% yearly interest on a loan? Damn! I noticed a new lender opened recently near my daughter-in-laws house - it used to be a Wendy's drive through for years - so the need must be there. I guess the borrower didn't pay as agreed, and interest charges just kept getting on, but that is astonishing! It's unfortunate that the people who need them the most are the ones being hurt, though. *shaking head in commiseration for them*
Greetings, Montecresto. :2wave:
Wow! 485% yearly interest on a loan? Damn! I noticed a new lender opened recently near my daughter-in-laws house - it used to be a Wendy's drive through for years - so the need must be there. I guess the borrower didn't pay as agreed, and interest charges just kept getting on, but that is astonishing! It's unfortunate that the people who need them the most are the ones being hurt, though. *shaking head in commiseration for them*
The borrower has to sign a new agreement. Payday loans aren't evergreen loans.
Rhetorical question? I don't know. The government is the one who made loan sharks illegal, I think.
I'm sure most people would rather go to a lender that has some semblance of decorum than Vinnie and his boys. I never heard of payday lenders breaking kneecaps or leaving horse heads in beds when the debt wasn't paid.
Then by all means, go there. :roll:
The point is these payday lenders are leaches upon the communities they are in, just like a loan shark. If you are poor and living paycheck to paycheck and you don't have the money out of this paycheck to make your expenses then its not doing you any good to take a loan at high rates to pay for expenses this check was insufficient for against your next paycheck that will be just as insufficient.
Hardly. You don't just get to run around and declare your uninformed opinions to be fact.
I grew up poor so I am pretty informed in that regard, but I also posted the stats on payday loans from the CFPB:
http://files.consumerfinance.gov/f/201403_cfpb_report_payday-lending.pdf
Hardly. You don't just get to run around and declare your uninformed opinions to be fact.
And it has been explained to you why those stats are skewed and incorrect. I don't expect you to listen to reality though.
Are you a payday loan lender, lol?
It ends up being a semantic argument. Regardless of the fact that you go in and sign a new agreement, you roll the loan over and continue to pay fees on the initial loan amount.
The point is these payday lenders are leaches upon the communities they are in, just like a loan shark. If you are poor and living paycheck to paycheck and you don't have the money out of this paycheck to make your expenses then its not doing you any good to take a loan at high rates to pay for expenses this check was insufficient for against your next paycheck that will be just as insufficient.
Actually, I helped the friend of a friend set up a store a long time ago, went through all of the training, etc. So I'm a hell of a lot closer to you. What's your experience?
No, it isn't a semantics. You pay interest on the new loan. You agree to take the new loan. You keep talking about revolving credit cards in this discussion, too. This isn't a revolving loan.
Because it works the same way. I get a loan for 300 dollars. I don't have the money to pay it off so I pay the fees for the loan and get a new loan for the amount borrowed with fees on that loan. I then don't have the money to pay it off so I get a new loan for the original amount borrowed with fees on that loan. How is that in practice any different in terms of how much you end paying in interest and fees than a revolving loan with a triple digit interest rate?
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