Payday Loans and Cash Advance Stores

enjoyingspring

In the city where I live I have noticed in the past years all these Payday Loan and Cash Advance Stores opening up. They seem to be on every corner or in every small strip mall.

I really feel sorry for people that get hooked up with these places as they can never get free of them.

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juellie1962

they are evil. My sister took a job with one because that is all she could find. She hated giving people those loans because she knew they'd be hooked in for life. They should be outlawed!

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angelaid

They are all over up here, too. And I can't tell you how many clients called that "It's my money, I WANT IT NOW!" 800 number. I want to throw the television through the window every time I see it.

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bob_cville

They make huge sums of money from the people that can least afford it, and then make large "campaign contributions" AKA blatant bribes to politicians to make sure that any bill proposing to regulate the industry, or even to hold that existing laws on usury governing the maximum annualized interest rate should apply, isn't passed into law. Which the slimy politicians usually do by preventing the bill from ever coming up for a vote or even coming to the full legislative body for debate.

They often charge a $15 fee for a two week loan of $100 which translates to an APR of 391%, or if the borrower cannot pay the loan off after two weeks, they can pay $15 to extend the loan for another two weeks. If the continue this process for an entire year, they pay an effective APR of 3733% .

Its only different from loan sharking in that they give a cut to the politicians as "campaign contributions" to anoint their slimy practices as "legal".

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Chi

I see the Western Sky commercials all the time, and the fine print is appalling. Their "financing" results in paying back 10x what was borrowed.

I see it too for a computer commercial. A new computer can be yours for X amount of money for something like 5 years, resulting in paying over $5k for a computer worth a tiny fraction of the price.

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socks

I can see it might help the most disciplined person who would take the loan, pay it back, and NEVER go back there again. But how many actually do that? Probably none. It's like quicksand. Why isn't it against the law?

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graywings123

John Oliver's scathing review of payday loans says it all.

Here is a link that might be useful: Youtube - John Oliver on Payday Loans

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Debby

They are all over my neighbourhood. "$300 for $30!" is what one sign says. That's a lot of interest. Pawn shops are worse. There is one here that's huge, and the owners became millionaires because the people in my area pawn stuff when they have to pay rent, buy food, etc.. My son used to work for them, and hated it so much because he knew the pawnshop was giving the customer bottom dollar for their products so they could mark them up for a big sale because they knew the person pawning their product wouldn't be coming back to pick it up. There are pawn shops and payday loans businesses all over this area.

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rob333 (zone 7a)

I can't see that I'd ever use one of those places. I'd have to be desperate for groceries or medical care before I'd do that, and I surely have someone (family) or some place (my church) I could turn to before doing that? I cannot imagine beholding to those vultures.

___________
Those "It's my money and I want it now!" places are different. Those are for folks who have annuities, won the lottery, cash settlements, etc. It's a one time deal. You give them a piece of the pie, so that you get the entire lump sum payment rather than monthly payments. So if you win a $300,000 cash settlement, but you're getting $2500 a month for ten years, you can give them your business and they'll give you $210,000 all at one time. Sure, you lose 30%, but that's your choice.

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Elmer J Fudd

graywings, that's not a scathing review, it's a satirical comedy piece. In the same style as what Jon Stewart or Stephen Colbert do.

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kathi_mdgd

They are on every corner here as well,and we are a military town (Camp Pendleton).They always hold seminars on base to tell the men and women to steer clear of these places,and also the stereo stype stores at the mall that grab those guys as they walk by and try to talk them into buying that over priced junk they sell with a high interest rate.

That stuff makes my blood boil,as so many of them are sooooooooooo young and think they are getting good deals~~~~~~~~~NOT.
Jmo
Kathi

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joyfulguy

Sprouting like mushrooms around here, too.

I'm disgusted, would like to organize seminars to encourage and discuss with folks how to make their money work more effectively.

I'm wondering how I can publicize my offer and gather the folks who'd like to discuss it together, whether on a once or twice, or more regular basis.

Any ideas on how to do it?

Few appreciable wage raises in recent years ... but the prices keep rising ... which means that we're having to get by on less.

ole joyful

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Elmer J Fudd

These places target blue collar workers, part timers and others with lower income levels and lower education levels who maybe think they have no alternative but to borrow at such steep rates. You can pick out these swindlers a mile away. More dangerous, in my mind, are mainstream banks and other credit card issuers that can get people into major credit trouble with much greater amounts of debt.

I'm not sure that people who get sucked into these predicaments are necessarily open to listening to someone talk about financial topics they may not even understand. As with the preacher on Sunday, those who go are probably not those who need to hear the message.

As far as the economy is concerned, this varies significantly by region and industry segment. Business is booming in my area, personal income and real estate prices, already high, continue to climb. The stock market has been on a 5 year climb too.

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susanjf_gw

but aren't the mortgage loaners who loaned to high risk people and almost broke the country just as bad?

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Elmer J Fudd

Yes, almost the same. I was referring to them when suggesting the respectible names needed to be included with sleazy operators and that they could do more damage.

People need to bear responsibility for their own actions too, and there was a lot of that lacking in the real estate bubble and subsequent lending crash.

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joyfulguy

The trouble with those "ninja" (no income - no job) mortgages was that, unlike the smaller and more local banks, that usually carried the mortgages that they issued, themselves, so were more careful, they were put together in clumps by major banks and sold off to others ... after having been given a good rating by the rating agencies ... who depend on the big banks for their business.

If there was trouble, resulting in foreclosures, ruined credit rattings ... and even some suicides ...

... not a problem for the guys who'd put the blocks of mortgages together: no skin off of their nose.

And I see that the Bank of America has just settled for multiple billions ... but no one going to jail.

ole joyful

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chisue

Did you know you could turn your car into money? Just give these people the TITLE to your car... Wait, WHAT?

If I have the title to your car...I only need to send the repo man to bring me the car itself as soon as you default, right?

If you needed money -- and a car -- couldn't you sell your car and buy a cheaper one?

These businesses prove that so few Americans have any savings.

I understand it's nearly impossible to save without a living wage, but I wonder where people who *could* save are putting every last dollar. I tend to blame McDonalds for the commercial telling Americans what we DESERVE today.

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marilyn_c

My nephew won $160,000 in the lottery. He bought a new pick up truck and a Lexus for his wife. Then they went on an extended road trip vacation. Ran out of money and put the Lexus up for a title loan. Couldn't pay it. Put up the truck up. Lost them both. Back to living in a rented trailer in a trailer park. Real genius. He never held a job until he was nearly 50. His mother, my sister, took care of him. When she died, he married her best friend. You can't make this stuff up!!

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maifleur01

I worked where our state's very first lottery winner did. He only won a million. Immediately retired from being a security guard went out an purchased a very large home. Paid down on several expensive cars. Was in the news buying furs for his wife. Then the hospital that had written off his heart attack expenses decided that they needed to be repaid. He fought it in court but the next year he was back at his old desk as a security guard. Most people recognized him and some thought he was just working to fill in his days. I read about it in the paper where he lost the lawsuit. I do not think he was able to keep anything.

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chisue

Those Riches to Rags stories would indicate that giving a child an allowance is a good teaching opportunity. People who have never had money do not understand how to spend 'some', or that what they have is finite -- will not regenerate. They believe their entire lives have been changed forever. Magic 8 Ball says "Possibly So" and "No".

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ravencajun Zone 8b TX

Old post!

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Kathsgrdn

They are here too and one of them throws their cups with their logo, cheap pens and note pads on our front lawns every so often. Very annoying.

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bengardening

When I came home today I had a message on my AM that said I had applied for a loan at one time and was denied. They now reviewed my application and now I qualify for a loan. We have never applied for a Payday loan.

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sushipup1

When I came home today I had a message on my AM that said I had applied
for a loan at one time and was denied. They now reviewed my application
and now I qualify for a loan. We have never applied for a Payday loan.

Phishing.

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marilyn_c

I had a text for "Louisa" today, saying she qualified for a loan. I have gotten messages for her several times, and also for some guy Phillip and one named John Hargraves. After trying for a very long time to tell whoever that they had the wrong number, I gave up and now I write them a story about Louisa or Phillip or John Hargraves. I've gotten to the point I look forward to hearing from them. Today I told them Louisa had died and she was a meth addict. I make my stories very chatty, telling about Louisa's children that I am raising...her 14 yr old gang banger son and her 4 yr old daughter who has bad teeth. Before anyone chastises me for messing with these people, they annoy me. I don't have any loans or need a car warranty or student loans forgiven. I love writing the stories and I make them as wacky as I can. I'm sure no one believes them...but since they are liars anyway, what do I care.

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Olychick

Marilyn, I've gotten lots of bill collector type calls for a woman with the same last name and first initial as mine, but a different first name. I'm listed in the phone directory (remember those?) with my last name and only my first initial. I got so tired of fielding the calls and trying to explain they had the wrong # that I did the same as you - made up stories about her death, etc. The calls finally stopped.

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sushipup1

Nope, the current administration is gutting the consumer protections regarding payday loans.

https://www.nytimes.com/2019/02/06/business/payday-loans-rules-cfpb.html

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