I guess I’ll say it:
Late Stage Capitalism
damn it, I keep praying for the doctors to diagnose me with incurable something or other ( probably optimism) so I can take all these loans at once and go on the drug fueled orgy I believe I was destined for.
I really surprised that California has such weak usury laws.
free markets are a good thing right?
If Elizabeth Warren becomes VP, she’ll finally enact a federal usury law.
If Bernie Sanders becomes VP, no one will be poor enough to take one of these loans in the first place.
If Joe Biden becomes VP, we’ll have some good laughs over something he said on late night TV.
The point is, this can only get better. We’re hitting rock bottom.
IANAL, but isn’t that usury and therefore illegal?
We really need a cap on loans like this. It is fucking ridiculous. Why do pawn shops have very low limits but these places don’t?
Personally, I’d rather default on the other bill.
As always when evaluating an financial proposition, one has to ask
“compared to what?”
If the answer is, “declare personal bankruptcy and get one’s life moving again,” then yes, these loans are hateful.
But anyone considering this loan is high risk, and desperate. They are seeking “help” from a loan shark, but at least a loan shark (presumably) subject to legal review and constraint.
For many, the next choice might be an underground loan shark. and this is much worse.
How do you think organized crime source their drug mules and trafficked humans? Loan sharking is a big one.
“I can’t pay.,”
“No problem. Have your daughter drop by my bar Saturday night – she can, um, help clean up. work off some debt”
Also, there can be good reasons to take this loan. You’ve got a great new job, but your car needs a repair. If you miss work, even once, you’re gone. The check is literally in the mail. So you pay this usrious rate, and exorbitant fees, until that check arrives. Then pay off the loan immediately. Job saved.
This question isn’t whether greedy people are preying on the weak. That is clearly true. But wouldn’t you rather this predatory pursuit was under some sort of legal oversight?
[quote=“bizmail_public, post:10, topic:81158”]
But anyone considering this loan is high risk, and desperate. They are seeking “help” from a loan shark, but at least a loan shark (presumably) subject to legal review and constraint.[/quote]
I think the RICO laws prevent them from breaking knee caps, but as long as they operate at the national level, there’s no limit on interest or fees they can charge. They can basically skate around all state usury laws.
There’s literally no reason you should ever take one of these loans. There is no situation that is made better by them. You should try absolutely any other legal option.
at a 99.75% rate!
Are you just baiting someone to give a Drumpf example?
If you look at Delaware rates, they state Our lowest rates and higher loan amounts are reserved for customers with excellent credit, implying that the rates they list here are in fact their lowest rates:
But what’s wrong with capping the interest to say, %20 per year?
Or better still, make banks give out short term loans that are capped to %20 per year? They have the infrastructure already.
I guess that would require regulation though, which is bad because something.
I keep hoping this was an ad in The Onion, but no luck.
a lot. Even in this low-interest rate environment, anyone with a default risk higher than about 7% will be shut of out the legal banking system, and therefore diverted to the even-more toxic underground market.
I guess that would require regulation though, which is bad because something.
I don’t understand what you’re trying to say.
My whole point is that society as a whole will be healthier if loan sharking occurs in a regulated rather than unregulated (eg underground) setting.
Somehow the notion that loan sharking shouldn’t go the way of the dodo doesn’t sit well with me.
You think these lowlifes obey the law. That’s cute.
