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This is so true.
How about it Shazbot?
How about starting your own leading company to help these people?
And you lib s think you have all the answers.
I don't mind you guys being blathering idiots. All kingdoms need jesters. I just wish you would stop thinking you know how the government should control us all.
Don't you believe in freedom, personal responsibility, and personal choice?
If you're trying to protect people from high payback rates, then why stop there?
Why not eliminate all gambling.
Why not eliminate all drugs, alcohol, etc.
Just where will your ideals stop?
You're every bit as bad as the religious zealots you despise!
This is so true.
How about it Shazbot?
How about starting your own leading company to help these people?
It doesn't keep the lenders from going in the red if they don't charge enough for their services.
payday stores are front for capitalists looking for higher returns
Behind 700% Loans, Profits Flow Through Red Rock to Wall Street
Joshua Wrenn needed money to make the January payment for his Jeep Cherokee.
The truck driver and aspiring country singer in Madison, North Carolina, got $800 within minutes from a website he found on his phone. When he called to check his balance a few weeks later, he was told he had electronically signed a contract to pay back $3,920 to a company owned by an American Indian tribe.
“I didn’t ever see a contract, not one time,” said Wrenn, 30. “If I was that stupid, to sign for $3,000 for an $800 loan, I might as well bury myself alive.”
Revenue from American Web Loan flows through the tribe to a firm owned by Mark Curry, according to a presentation his company gave to potential private-equity investors last year. Curry, whose payday-loan websites have been sanctioned by state regulators for the past seven years, is in turn backed by a New York hedge fund, Medley Opportunity Fund II LP.
Chasing big returns, some Wall Street investors have been willing to overlook the legal uncertainty of a business that regulators say is exploiting a loophole to trap poor borrowers in a cycle of debt. Hedge funds, private-equity firms and Silicon Valley venture capitalists are investing in a new generation of Internet companies that lend money at high rates to working people.
http://www.bloomberg.com/news/articl...-indian-casino
just another way the 1% to rape, pillage, loot, vampire-suck the "47%".
I read where the average unbanked/underbanked household averages $2K - $3K/year in financial services fees.
- 7.7 percent (1 in 13) of households in the United States were unbanked in 2013. This proportion represented nearly 9.6 million households.
- 20.0 percent of U.S. households (24.8 million) were underbanked in 2013, meaning that they had a bank account but also used alternative financial services (AFS) outside of the banking system.
- The unbanked rate has varied from 7.6 percent in 2009 to 8.2 percent in 2011 and 7.7 percent in 2013.
- The 0.5 percentage point decrease in the unbanked rate between 2011 and 2013 can be explained by differences in the economic conditions and demographic composition of households over this period.
- In particular, compared to 2011, households in 2013 had slightly higher levels of employment and income, and were slightly older and better educated. These characteristics are all associated with a higher likelihood of having a bank account.
- While relatively small proportions of U.S. households experienced major life events in the past year, households that transitioned in or out of the banking system were more likely to have experienced certain events:
- Among households that recently became unbanked, 34.1 percent experienced either a significant income loss or a job loss that they said contributed to the household becoming unbanked.
https://www.fdic.gov/householdsurvey/
LOL...
Changing the goal post?
Idiot using a phone instead of computer, that normally does not display a whole web page...
Shazbot...
Just how far should we go to protect idiots from themselves?
I'll also bet that isn't the whole story. His payment(s) were probably late.
Regardless, he was a total idiot!
This is because of the agendas of people like you, forcing the payday lenders in a state out of business!Payday loans like Wrenn’s -- costly, short-term advances for those with poor credit -- are illegal in North Carolina and about a dozen other states. That’s driving online lenders to Indian reservations, where tribes say they’re not subject to interest-rate regulations.
..and that's what it comes down to for CC, debtor prison...Yes, a loan is collateralized by a check, but it's still only a loan...like most bad loans, borrowers should have a chance to pay off their obligation for pennies on the dollar...payday lenders just mad because they don't have the leverage to destroy your credit in the process...
Do you agree or disagree that it requires a higher interest rate to stay in business when lending to people who are a credit risk?
The way a payday loan works is they loan you the money, then give them your checking account number and authorization for an electric check on the day you get paid. If the money isn't there, I could see how they could argue that you "wrote" a hot check.
All of that being said, these businesses are a gold mine and I've thought here and there about owning such a place, but unfortunately I would be a terrible owner trying to counsel the out of doing a payday loan. I have a major ethical conflict with it.
500-700% yearly interest is predatory and then you still owe the principle...I'm sure some loans are bad, but not to justify that type of usury
$46B/year, and without insane usury, no "incentive"
Obviously, wealthy capitalists who own, back these payday criminals KNOW the reward vastly outweighs the risk.
http://www.aboutpayday.com/payday-lo...ry-statistics/
"a higher"
So the Spurstalk consensus is these places shouldn't exist and their customers that desperately need short term loans for whatever reason are just out of luck. Correct?
Incorrect. I think the consensus is that they should be more heavily regulated to prevent predatory lending practices.
How exactly is charging 300% interest on an amount of money that the borrower has no chance of making back in a reasonable amount of time good business? Seems to me that that's just taking advantage of the less intelligent people who are in a tight spot who have nowhere else to turn.
I know I borrow at prime plus one but they would go out of business in short order doing that with the broke ass credit risks they loan to.
Who or what is going to replace them as a lender of last resort?
Another example of government potentially making the problem worse instead of better with their "good intentions". Those people will have nowhere to go. For every deadbeat that whines about not being able to pay it back there are probably 5 that pay it back and appreciate the loan. Unfortunately the deadbeats drive the cost up for everyone.
Last edited by CosmicCowboy; 02-10-2015 at 01:11 PM.
As I said above, raise the Federal minimum wage to $15+ and raise the OT threshold to $75K/year. that lifts people out of poverty, off public assistance (taxpayers off the hook), and out of the bloody claws of the payday predators.
Sure, what the tribe allowed was excessive. No doubt. But would it have ever happened if regulators allowed lenders in the state?
go look for what happens when payday predators are allowed in a state.
That would appear to be the response of those on the left isle.
Looks like they want to create even more people dependent on liberal policies!
So what is a fair interest rate so these places can stay in the black for the money they lend and never recover?
Well, if nobody else will lend to them, what does it mean?
Doesn't it mean they are a high credit risk?
How long do you think these places would stay in business if they charged 26% interest rates?
Why don't we get a little more clarity on the proposed regulations before we start talking about potential replacements for the "lender of last resort" and the corresponding unintended consequence.
I understand these lenders take on additional risk and their business models require a higher interest rate, but there is a lot of room between prime +1 and 300%. If nothing else, regulation requiring disclosure and transparency (not buried 10 pages of fine print coupled with aggressive sales tactics.)
Cost of living for everyone would go up, and that $15 minimum wage might not be worth any more than the current one today.
Stupid people will lose their money one way or another. These lenders are just collecting it before a poker machine, drinking, or something else does.
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