Square gets into the loan sharking business with 65% APR short-term loans

[frauenfelder]

Originally published at: https://boingboing.net/2020/08/17/square-gets-into-the-loan-shar.html

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[cepheus42]

A direct result of Trump rolling back those payday loan rules. Once again allowing capitalists to profit of the poor and desperate.

[KathyPartdeux]

Loan sharking bastards.

[Professor59]

I still can’t tell if this is an ad, or an article warning you to avoid the thing.

[Murgatroyd]

I must have missed an announcement somewhere. I usury no longer a thing?

[Slant]

Some day soon every company will be a payday loan type of operation. Going to your local bakery to pick up a loaf and 150 bucks will be so convenient! You’re going back there in a week anyway, just be sure to bring the other bread with you…or else!

[glenblank]

Square gets into the loan sharking business

So, the maximum loan amount of $200.00 will cost you a flat 5% fee ($10) if you repay the loan within the four-week term. After a one-week grace period, they tack on another 1.25% ($2.50) every week.

And the minimum $20.00 loan will cost you a $1.00 flat fee for four weeks if repaid on time. Otherwise, add an additional 25 cents per week after the grace period.

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You’ve never actually met a real loan shark, have you?

[emo_pinata]

Making the numbers smaller doesn’t make it less than a 65% annual rate, it makes you mocking the poor for being too poor.

[KathyPartdeux]

Yes, I have.

Next question.

[gracchus]

Square already has a nice business, but some tech companies just can’t resist getting in on that good old American f*ckbarrel action that squeezes every last dime out of poor people.

[GulliverFoyle]

Square: “We let you keep your kneecaps.”