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Payday Advances, the legal way to steal your cash!!
Payday Advances, the legal way to steal your cash!!
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This has probably been on here already, but here it is in case you haven't seen it: The Predatory Lending Association website: [www.predatorylendingassociation.com]
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Maybe this is one instance where the govt should step in, as several states have done already, and enforce usury laws??
Anyone??
@Chols: Yep... agreed, better taking a cas advance from a CC, less interest...since it's APR and only a marginal fee (about 2.00 or so, depending on your financial institution)
@doctor_cos: I would think the fine folks at the Money Store have examined the laws of the land and feel pretty confident that they are technically NOT breaking the law. I don't see it as enforcing current law but plugging up loopholes that allow them to get away with this behavior. Perhaps a gross reciepts tax on them for 95% or so?
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@Chols: I kinda figured the people using the payday loans were the sort of people that wouldn't qualify for a credit card.
You get better interest rates from traditional loan sharks.
The people who are stuck with Payday, I would guess, are not let's say the demographic for this site. yeah?
But, gotta keep reminding the world that they are crap.
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Payday loans are synonymous with loan sharking ...
The loans seem okay for what they are supposed to be. The problem is that people don't use them that way.
They are supposed to be for small amounts of money that you are just \"short for\" Like if you wrote out all of your bills, decided on a dinner out, then had an unexpected bill, like a flat tire or a doctors bill.
Instead it seems that people are using them as free cash or to stave off a bankruptcy.
I have been in situations where I'm looking at $200 on Friday and I need a $25 co-pay today.
The problem is spending money they do not really have or actually expect to have. People used to just do this with check kiting.
I can see the regulations that require a through education for the consumer as part of a solution.
I've used pay day loans a few times in the past. Everytime I did it I hated it, but it wasn't because I overspent but because something unexpected usually came up.
Now I've got a few credit cards I don't max like a I use to and just use those instead.
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@ottawa_guy: marginal ha. read the agreement. 3% cash w/d fee on top of cash apr.
look for balance transfer offers, hit up family, etc. before hitting up the legal loan sharks.
To truly understand what these folks do, simply pay attention to their customer demographics. They [payday lender] claim to be nothing more than a source of emergency cash. I doubt this claim.
How often do you see one of these shops in the more affluent neighborhoods ?
They obviously pray on people whom are already in a bad way.
If they were truly scrupulous lenders they would offer debt counseling as a prerequisite to loans which are greater than say 50.00$.
I used to work at one of these stores back in the day. It didn't last long - I figured out how bad it was pretty quickly.
They prey on the uneducated who are in an emergency mostly. I've seen a lot of people who funded gambling habits with them too.
Once folks get one, they are stuck. You'd literally have to go without an income for a week and a half to get out of the cycle. It is a sad situation.
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proper financial planning is very important if anyone wishes to remain away from these sort of financial payday loans. But even more important thing is that if you apply for such a loan rest assured that you can repay the full amount as soon as possible. If you have any sort of doubt it is better to be away from these sort of loans. Many people apply for a payday loan to repay an earlier loan. This is ridiculous as they should have thought before applying. There is no way out if you borrow from one to repay the other.
People are better off taking a cash advance at 25% on a credit card.